What is the relationship between higher oil prices and the country's economy?

Any country's economy is dependent on its industrial and agricultural production and they all have machineries to work which mostly run on petroleum products directly or indirectly. It is obvious then that higher the oil-prices, more will be the production cost and load on the economy.





The above is a very simplistic answer otherwise economy is a very complex subject.What is the relationship between higher oil prices and the country's economy?
Simple example goods in the shops are diliverd by Lorry high price at the pumps = cost passed onto customersWhat is the relationship between higher oil prices and the country's economy?
High oil prices: only good for the oil companies, which don't really share much of their profits with the rest of the ';economy';.





How does it affect the average joe/nuclear family?





Gas cost $0.79/gallon eight years ago. Now it costs $3/gallon. A trip to the beach used to cost $20 in gas. Now it costs nearly $70. Commuting to work used to cost $10/week. Now it costs over $30.





Transportation costs affect EVERYTHING. It costs you more to get to work, so they have to pay you more. So now the service you provide to the public has to cost more. Now people have less money in their pocket after buying your goods or services, and even less after driving to get there. Which means they have less disposable income to spend on travel, dining out, leisure activities, etc.
The more money people have to spend filling up their cars, the less they will have to spend elsewhere. Also, things that require fossil fuel [or its derivatives] to manufacture will be more expensive. Finally, airline tickets will have to cost more if jet fuel prices increase, and SUV sales will plummet. As you can see, the news is not good, but thanks to Visa and Mastercard, people will still keep spending.
Not only is personal transportation more expensive, its also more expensive to ship anything. This makes everything else more expensive; from produce, to meats, to retail items, to pretty much everything else.





Basically higher gas costs = higher costs for everything.
I think is good for some economies whiches produce it will be great, but not for all this countries, the external effects do the diference.


high prices in everything and only the income and consumption of people may do the diference
When the price of oil goes up, the dollar goes down. So I would say that the relationship is one that has merit.
Watch the video by Lindsey Williams. It's in 8 parts,and it's urgency to the american people is alarming.


Take the time to watch and learn. The solution to the problem starts with you and I! Forward this to those you care about!


Click on the link below or copy and paste to your browsers address line...





http://youtube.com/watch?v=NbakN7SLdbk%26amp;m鈥?/a>
Oil prices rising drive up the cost of everything. This is because oil is involved in everything you use. Crude oil provides the base chemical stock for most if not all plastics. It provides the power to manufacture the goods. It provides the chemicals for insect repellent and fertilizer to grow food. It provides the power to transport that food to market, and keep it fresh.


As the prices rise the consumer can buy fewer products, this slows the economy.