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Article: A crude awakening; Oil prices.
- Article from:
- The Economist (US)
- Article date:
- August 21, 2004
CopyrightCOPYRIGHT 2004 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Never underestimate the power of oil
BRAIN power and computer chips are supposed to be the fuel of the modern "knowledge economy" rather than oil. Yet the black stuff still has the power to shock. Crude oil prices surged to a record $47 a barrel this week, nearly $10 higher than at the end of June. There are already signs that the economies of America, Japan and China are slowing. Could higher oil prices once again push the world economy into recession?
The optimistic camp claims that oil no longer matters much. Others, however, blame higher oil prices for the sharp slowdown in American consumer spending this year. In different ways, both are wrong.
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