Oiling the wheels of industry at $100 a barrel
The start of 2008 saw oil prices hit $100 per barrel – a new record. This important psychological as well as economic milestone has, as a result, also seen petrol prices rising to over £1 per litre. The increase in prices may prove to be an important factor in determining whether the Bank of England is able to lower interest rates.
The heavy price of $100 per barrel Guardian (4/1/08)
Oil sets fresh record above $100 BBC News Online (3/1/08)
Oil price at record $100 a barrel BBC News Online (2/1/08)
What is driving oil prices so high? BBC News Online (2/1/08)
Global oil industry in figures BBC News Online (2/1/08)
Plenty of oil left in the global tank Times Online (16/12/07)
Oil at $100 threatens to choke economy Times Online (3/1/08)
Videos
Oil prices break $100 barrier BBC News Online
Questions
| 1. | What are the main factors that have driven oil prices over $100 per barrel. |
| 2. | Using diagrams as appropriate, illustrate the changes that have taken place in the oil market. |
| 3. | Assess the likely impact of the increase in the oil price on the major UK economic targets. |
| 4. | Discuss the extent to which the Bank of England will need to take account of higher oil prices in its decisions on interest rates. |