Congressional Digest

International Debates Archives November 2005 No. 8 Vol. 3
Foreword

World Oil Prices

The Consequences of Tight Supply and Rising Demand

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Foreword

The price of oil has been rising steadily for more than three years, and consumers around the world are feeling the pinch. With a barrel of oil currently trading for more than $60, ripple effects are spreading throughout the world economy, as the increasing cost of gas, travel, home heating oil, and a variety of petroleum-based products takes bigger and bigger bites out of the average person’s budget.When this long-term trend collided with the catastrophic event of Hurricane Katrina, the average cost of gas in the United States approached $4 a gallon and drivers rushed to service stations, spurred by…

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