Comment: Oil Price Hikes Offer Africa A Silver Lining - Climbing Oil Prices May Be A Headache For The West, But Could Provide Africa With Much Needed Development Revenue.

Banker, The, August, 2007

As oil prices approach last year's all-time high of $78.65 a barrel and Goldman Sachs warns that prices could surge to $95 a barrel within six months without extra output from Opec (the Organization of the Petroleum Exporting Countries), the implications for many aspects of the global economy are significant. But while developed countries consider the impact of higher oil prices on inflation and possibly interest rates, the effects are being felt in very different ways elsewhere, not only in the Middle East but also in often-ignored Africa.

The doubling of oil prices from 2002 to 2006 has resulted in massive growth in Middle East export earnings. With prices averaging more than $60 a barrel, the current account surpluses for the six Gulf Co-operation Council...

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