First, it has contributed to rising oil prices.

Consequently, oil prices increase.

Can High Oil Prices Be Good?

No quick fix exists for oil prices.

But this economic logic does not apply in the case of increases in oil prices.

Would the price of oil have increased less if oil were priced in euros instead of dollars? Did the dollar s fall cause the price of oil to rise?

The coincidence of the dollar decline and the rise in the oil price suggests to many observers that the dollar s decline caused the rise in the price of oil.

Around the world, there is anguished hand wringing about the high price of oil.

The second threat to economic recovery is high oil prices.

Sky high oil and food prices added to the pain, and thus to the downturn.

Moreover, it is high oil prices that weakened the dollar, not vice versa.

After all, these events don t really explain why prices of other commodities often followed that of oil.

Ordinarily, a sharp rise in oil prices quickly translates into higher inflation expectations, followed by rising interest rates at all maturities.

As oil prices rise, these countries dependence on the oil sector increases, despite all efforts to diversify their economies.

Filipino journalist Iris Cecilia Gonzales tackles the impact of higher oil prices in the Philippines, Laos and Cambodia.

In a few weeks, we will put in place a social safety net that will cushion the impact of high oil prices on the poor.

The high price of oil was governed by the market and was beyond the control of energy exporting countries.

High oil prices kept Russia's economy and common people's income growing rapidly.

In the 2000 s, largely thanks to high oil prices, Putin paid off the state s debts.

The euro is at record levels, oil prices are surging and interest rates are expected to go higher.

A country s property rights in foreign oil assets are likely to diminish as the oil price rises.

High oil prices now seem to be the only factor allowing Putin to keep the reform charade going.

Bolivians also ask why foreigners reap all the benefits of today s high prices for oil and gas?

High world oil prices and capital inflows are strengthening the balance of payments and contributing to exchange rate appreciation.

But this economic logic does not apply in the case of increases in oil prices. Although high oil prices look like a tax on business activity that depresses aggregate demand, they also raise inflation, both directly and indirectly.

As the representatives of Kuwait and the Islamic Republic of Iran had pointed out, high oil prices were indeed caused by growing demand rather than restricted supply.

Presenting Iran with these alternatives presupposes that the West does not fear rising oil and gas prices.

High commodity prices have benefited producers of oil and gas (such as Venezuela and Bolivia) and minerals (such as Chile).

WASHINTGTON, DC Until a few weeks ago, while oil prices were surging, debate raged about the relative roles of economic fundamentals and speculation in boosting oil prices.

A second argument is that higher oil prices are due to lower interest rates and anticipations of higher long term prices.

All this, not production costs, lies at the heart of high oil prices and the scramble for oil contracts in Central Asia and Africa.

Around the world, there is anguished hand wringing about the high price of oil. But if political leaders and policymakers want lower oil prices, they should be promoting policies that strengthen the dollar.

All these provocations add upward pressure on oil prices, enriching the Iranian government.

In 2003 and 2004, the balance of payments performance improved due to rising oil prices and increased receipts from the services sector.

Our debates are unfolding against a backdrop of escalating oil prices, whose worst fallout we may have yet to see.

Oil prices rose throughout 2004, with accelerating fluctuation as prices peaked in August and October.

Furthermore, with oil prices up so much, inventories should have fallen, owing to strong incentives to reduce holdings.

Within this second transition, higher oil prices mean consumption by oil producers has to increase while that of oil consumers has to fall.

Reflecting their faith in markets, most economists dismiss the idea that speculation is responsible for the price rise.

A massive stimulus package, prompted by the 1970 s rise in oil prices, gave rise to an entirely new industry.

When oil prices were high and growing, the government could compensate for poor performance by throwing money at problems.

The price of oil for non producing countries has further deepened that divide, as it takes away from the resources necessary for their development.

The Oil Price Opportunity

Oil price development

The high and rising price of oil does, however, contribute to the decline of the dollar, because the increasing cost of oil imports widens the United States trade deficit.