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Page added on December 6, 2011
High oil prices may threaten growth: BP
The fragile economic recovery could be negatively affected by high oil prices, especially in the United States, BP’s (BP.L) chief executive said on Tuesday.
Despite the looming threat of a sharp economic slowdown in Europe affecting demand for oil around the world, oil prices have remained above $100 for most of 2011 thanks largely to strong growth in Asia and instability in producing countries.
Stubbornly high oil prices now have the potential to affect economic growth and hit demand for oil, Bob Dudley told executives from the world’s largest oil and gas producers gathered in Qatar.
“It is important in the current situation of a fragile global economy and I think right now we are probably walking a fine line,” Bob Dudley told the World Petroleum Congress in Doha.
“It is impossible to say what price exactly will affect the economic recovery but we do know which regions will be affected most,” he said, adding that the United States was most vulnerable because of its slim fuel tax buffer to soften the blow of rising oil prices through pump price tax cuts.
“There is a risk that in the world’s largest economy and largest oil consumer, the United States, could be hit by a lack of supplies and a high price of oil with consequences for the rest of the world,” he said, adding that any slowdown in the U.S. economy would inevitably weigh on global growth.
6 Comments on "High oil prices may threaten growth: BP"
BillT on Tue, 6th Dec 2011 10:36 am
This is news only to the def, dumb and blind. This is the future,not an imaginary possibility. Higher oil prices are a certainty. Much higher.
jaime on Tue, 6th Dec 2011 1:10 pm
THE END OF THE ILLUSION THE MATRIX TEARS APART. HOW GLORIOUS IS TO SEE WITH MY OWN EYES THE FALL OF ARROGANT POWERS.STARVATION?BRAZE YOURE SELFS.
armagedon51 on Tue, 6th Dec 2011 7:54 pm
Reducing state taxes on gas to buffer price increase is dum. It deprave already indebted governments to loose more revenue and encourage consumption as consumer remain insulated. On the contrary governments should be increasing taxes on non-commercial gasoline as most of Europe and Canada do in part to curb wasteful habit.
yeahbut on Tue, 6th Dec 2011 8:33 pm
Hmmm. So…they’re saying that as the global economy tries to bounce back from recession into another uptick of growth and consumption, it will bang its head against some kind of high oil-price ceiling that will crush it back down to recession again? That seems a vaguely familiar concept to me- I wonder why? Oh yeah- because the entire concept has been predicted, explored and labelled ‘The Rocky Plateau’ here at PO.com and elsewhere, for years and years…sheesh, everything is a big surprise to those with their eyes closed, I guess.
Harquebus on Wed, 7th Dec 2011 1:37 am
Everything is transported, everything. Food is going to get very expensive to produce.
BillT on Wed, 7th Dec 2011 2:06 am
This is the best and easiest article I have found to explain why ‘renewables’ are not renewable without oil…
http://sunweber.blogspot.com/2011/01/energy-in-real-world.html
It has pics of the reasons…and should be in every newspaper.