It might be painful at the pumps, but it could force the Yanks to dump that SUV

The pain is at the pumps – but not only at the pumps. The most visible sign of rising energy prices is the

But don’t expect any easing to last. If the Chinese economy continues to grow at close to 10 per cent, that will mean that each year there will be more relentless demand on commodity markets. And while some easing of the pace of growth in the US seems likely, to take the pressure off would need something much more dramatic – and disagreeable.

Meanwhile, there remain considerable political risks, which mainly affect the oil and gas markets: Russia taking a more aggressive attitude on gas prices or Iran deciding to shade back its oil production for a while just to teach the West that it cannot be kicked around.

The Independent