Gulfnews: Alternative energy use 'can check oil-related inflation' - by Saifur Rahma

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Alternative energy use 'can check oil-related inflation' - by Saifur Rahma

The use of alternative, or 'green' energy could help oil importing countries tackle oil-related inflation, analysts say, as oil prices hover well above $80 per barrel. In the short to medium term, prices are likely to touch the psychological $100 mark. "Most oil importing countries need to seek alternative energy and ensure lesser use of energy to sustain growth," said an analyst, requesting anonymity.

The world oil supply increased by 415,000 barrels a day in September, to average 85.1 million barrels a day, according to the International Energy Agency. Of this, the Organization of Petroleum Exporting Countries (Opec) produces about a third, while more than 50 million barrels are produced by the rest.Although global oil product demand remains virtually unchanged at 85.9 million barrels in 2007 (a rise of 1.5 per cent over 2006) and 88 million barrels in 2008 (a rise of 2.4 per cent), the speculative elements in the international oil trade are going to use any excuses to push the prices up - something analysts feel, needed to be fixed.