What impact will rising oil prices have on the UK and global economy, and why?

Question

What impact will rising oil prices have on the UK and global economy, and why?

Answer 1

inflation, recession, possible a depression

Answer 2

Even electricity comes from oil energy

Answer 3

was just taking about this to the taxi driver bringing me home-they are dropping like flies he said the fuel is crippling them-and the price of everything else has gone up so much-cant believe i have to pay 1.40 for a loaf of bread that was 86p last year

Answer 4

well for a start the price of common goods in the shops will rise as most things are transported using diesel which is increasing every day. public transport and things like that will also rise in price

Answer 5

Very bad impact, world-wide,i do think they should have thought about this when they went into Iraq.   codger.

Answer 6

Transportation prices increase, Price of goods increases, people buy less, companies profits decrease, prices of goods increase even more, people buy less, companies cut jobs to stay afloat, other companies (who do work for the first companies) loose business, these companies cut jobs, people buy less, unemployment tax burden increases, the amount the treasury gets in as tax decreases, government cuts public spending, hospitals schools etc cut jobs, people buy even less, companies fold, more people loose their jobs etc etc

One of the problems the b of e faces is balancing boasting the uk economy with interest rate cuts and tackling increasing inflation.

Alot of the increase in food prices is actually due to increased prices of grain etc. But this is in a way good because it means uk farmers need less European subsides to stay afloat and so that money can be re distributed in other areas.

The reason oil prices are so high is because the Russian government wants as higher oil prices as possible to make the most profit for themselves, so to do this they play at scaremongering. Also problems in the middle east also effect it.

Answer 7

First, rising oil prices is a global problem now - no government can control or resolve this problem quickly. The simple effects of this will be that the price of everything - industrial, business, agricultural, services etc - will escalate rapidly because of their absolute dependency on oil for energy. As well as this, the industrial and business sectors will have to cut back to save money to remain competitive. This will mean a shrinking UK business and industrial base and more unemployment. Wages will not go up for the same reasons.

For all these reasons, the UK lifestyle will have to "downsize".....And I haven't even mentioned the cost from Climate Change, Overpopulation or World Food and Water Shortages which are seperate issues and pose additional world problems.

Not good....