Wednesday, May 20, 2009

Oil Price More than $60: Is it good for the Recession?

When economic recession started, at that time most people were worried about the high price of oil which reached to $150 a barrel. Then came the crash and the price fell below even $40. It did not make the oil producing countries very happy but the rest of the world was excited and had a sigh of relief. Now, many people have got some kind of expectation that the most part of the economic recession is over and they can have better future. Perhaps, because of the expectation, the price of oil has for the first time gone up to more than $60.00 in new York in many months.

I do not think that it will be good for the U.S. economy because yet, the sign of recovery is not very strong and at the same time, we should not forget that many people are still losing jobs every month. At this moment, the price of oil should not become a very high or else it can bring disaster for the global economy because most of the countries are still fighting against the economic crisis. For example, earlier today, we noticed that the Japanese economy is suffering a lot.

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