January 3, 2008

Oil reaches $100 a barrel

Whatever the reason given, the troubles in Pakistan, Africa or even the weak US currency the price of a barrel of crude oil rising by over four dollars to over a $100 is not going to be good news, unless you actually own an oil field.

This may seem an insignificant bit of news, but couple this with other factors that are occurring at the same time, and then this may be the breaking point for many fragile economies, which will in turn have a ripple effect throughout the world.

The most important factor is the fact that this single price rise may prevent any future interest rate cuts for some; this will then have a knock effect on property prices etc.

Source [BBC News]