Economic threat - bird flu or oil prices?

Filed Under Bird Flu

A barrel of crude oil hit an all time high of $72.20 last week, and it’s price is set to go higher.

In the UK, we can already see the effect of these record oil prices - a gallon of petrol is now about 97p per litre (note not a gallon!). It won’t be long before a litre of pertrol is £1 here, with similar price increases in Europe, and even, I hear, the United States.

As we all know, rising oil prices trigger price rises throughout the whole economy as transportation costs increases affect almost everything we buy. Industries have to charge more for their products as their energy costs increase, heating costs increase and those on low incomes become more at risk from hyperthermia in their own homes. Many other economic effects ripple through our economies.

A world recession could be the result.

So which risk poses a greater effect to the economies of the world - the small “potential” threat from H5N1 bird flu, or the “actual” threat of high, and rising oil prices.

Answers on a postcard please - send them to George Bush.