Another day and another record oil price. Yesterday, oil reached the $122 a barrel mark as the market reacted to concerns of violence in Nigeria which is a key producer of oil. Over the weekend, Nigerian militants attacked an oil ship off the coast of Nigeria and took two people hostage. Violent attacks in the oil industry in Nigeria continue to rise and this in turn seems to be fueling a lot of uncertainty in the oil industry as the market fears supply could be affected due to the violence.

With OPEC announcing that there will be no increase in the supply of oil one wonders what the possible solution could be to stop the rising oil prices. Today the price of fuel went up in South Africa by almost 50 cents a litre and looks set to continue rising judging by the high world oil prices. Everything we do requires fuel to one extent or another. High oil prices mean high prices for almost everything.

The biggest fear in the long term is that oil is a finite resource and one day it is going to run out and then what? That is why ‘major powers’ are doing all they can to secure all the oil left in the world. A lot of work is being done across the world to help promote the use of bio-fuels. Bio-fuels may be the solution but for now the world is fighting over controlling that oil that is left. More efforts should be done by these ‘major powers’ to find alternatives rather than fighting to control the oil that is left. With all this fighting and jostling for control, the oil prices will continue to go up and this will not be beneficial to the majority of consumers across the world.

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