Oil subsidies do no one any favours

THE global oil market has become distorted as oil demand grows rapidly in developing countries that subsidise oil prices well below the free-market price.

The result is rapid growth in oil demand in China, India and the Middle East driving the free-market oil price ever higher for developed countries.


This will eventually lead to a world recession.

The consumer-run International Energy Agency recently suggested world demand was growing too rapidly and that by 2011, OPEC would have trouble supplying oil demand.

Herald Sun (Australia)