Oil reaching for the stratosphere, G8 worried!

With Oil reaching the stratosphere with prices as high as $135, the G8 have started to apply the 'squeeze' on OPEC, urging them to increase production so as to alleviate the demand on the Oil rates. OPEC as we all know, has so far refused to do so, rationalizing that any such increase in production may lead to a resource depletion.

That rationalization as well as the fact that most of the Oil producing nations have started to see benefits in the high price of Oil, falls flat especially when one considers that there are billions of gallons of Oil available. Furthermore, if inflation is set to continue the current trend on a worldwide scale, it may after all be the right time to develop an alternative to Oil. Currently there are certain projects in the initiation phase, with the goal being to render Oil worthless altogether. But any such alternate fuel developed will have to undergo years of testing and in the meantime, it seems that we cannot do anything much except to grin and bear it.

The U.S treasury secretary Henry Paulson has made it known that the current spikes in the Oil price is not on account of speculators but that it is more on account of a supply and demand problem. It is high time that OPEC realized that it cannot have it both ways and that it should take into account the growth in world population and the increasing demand on Oil, therefore it should increase the production right away. One can only hope that the G8 will ultimately prevail, let us hope so.