Oil prices sank by over $ 40 after surging to a record $ 147 a barrel on July11. There is a mounting pressure on the US economy because of rising unemployment rate which means that more and more Americans will try to cut back on their fuel cost to save money. The unemployment rate has risen from 5.7 percent in July to 6.1 percent against the predicted figure of 5.8 percent.
The Organization of the Petroleum Exporting Countries has said that it may take action to keep the prices at $ 100 a barrel. This would require cut back in production.
In Pakistan the government had passed on the effect of the rising oil prices to the consumers. Now that the prices are falling world over, the government refuses to pass on the benefit to the people. If a slight rise in the rate of unemployment can disturb world’s largest economy, what would be the condition in a struggling economy like Pakistan.
Oil prices sank by over $ 40 after surging to a record $ 147 a barrel on July11. There is a mounting pressure on the US economy because of rising unemployment rate which means that more and more Americans will try to cut back on their fuel cost to save money. The unemployment rate has risen from 5.7 percent in July to 6.1 percent against the predicted figure of 5.8 percent.
The Organization of the Petroleum Exporting Countries has said that it may take action to keep the prices at $ 100 a barrel. This would require cut back in production.
In Pakistan the government had passed on the effect of the rising oil prices to the consumers. Now that the prices are falling world over, the government refuses to pass on the benefit to the people. If a slight rise in the rate of unemployment can disturb world’s largest economy, what would be the condition in a struggling economy like Pakistan.
Related
