Maldives is a net importer of oil and therefore heavily dependent on oil to run our tourist resorts, different modes of our transportation, our businesses including the construction industry and our daily life.
Any sharp increases or upward fluctuation of oil price has an impact on our industries and our life.
With the onset of European summer, oil prices have rallied for almost three weeks, triggering increased interest from investment funds looking to cash in on the surge.
The latest surge in the oil price is naturally leading to renewed concerns that it'll lead to global recession, higher inflation or both.
Brent crude prices rose to 78.40 usd yesterday, just 25 cents short of last summer's all time high. Bullish sentiment dominates the market amid anticipation of a significant increase from US refineries in crude demand.
Emerging economic giants India and China are thirsty for oil to drive their industries forward.
Oil consumers worry over the West's lingering dispute with Iran over their nuclear programme. If the West imposes tough sanctions, Iran may use oil as a bargaining tool.
Oil traders have said that in the hurricane season across the Gulf of Mexico, all it takes is one nasty hurricane to get the crude prices soaring.
Some analysts have predicted that oil prices may surge above $90+ a barrel rather quickly if such fears are realised.
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