Economists confirmed that there are several factors of high oil prices all around the world. In this regard they are of the view that one of the major factors of high oil prices is inflation all around the global markets. The economists have argued that inflation is the result of over all slumps in the world trade markets.
Oil prices have been increasing at an alarming way now a days. The prices of petrol have been increased up to $135.09 per barrel. In this regard, the Wall Street has confirmed that the heavy crude oil and gasoline prices have affected the demands and supply of the consumers and investors and they are suffering badly from fulfilling their demands. Therefore, high oil prices have increased the over all prices of all other kinds of consumer commodities such as wheat, rice, oil, vegetables, meat etc.
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Meanwhile, the economists are saying that the inclusive demands from states like India and China would exceed supply. In this way, a weak dollar would also enhance the oil prices per barrel more and more.
The high oil prices affected the consumer and investor demands. The consumers have been absolutely worried while purchasing the domestic grocery. On the other hand, investors are also worried while investing their money and enhancing their business and stocks. That is the overall slump in the consumer and investor market.
More and more alarming affect of inflation can be seen as the high energy prices. For example, the high oil prices have pounded the airlines sector. Continental Airlines Inc. has fallen nearly 27 % for the week, while United Airlines parent UAL Corp plunged near 46 %.
Various and different sectors of the economy have been slumped all around the world like commerce and trade, banking, education and industrial sector etc. It is occurring due to high oil prices.
Furthermore, the poverty, unemployment and depression have been prevailing all over the world which has shattered the desires and self esteem of the people. Poverty has increased so much that the people have been agitated to come on the roads and ask for the assistance.
In a nut shell, we can say that the high oil prices have shattered the psychic of the people all around the world and they are very worried to fulfill their demands. Therefore, the economists have said that these high oil prices and inflation would bring a famine in the world and it might be occurred in future such as in the shape of storm, hurricane, earthquakes and some other calamities which would shatter the overall economy of the world.
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