High crude oil price or world trend inflationary economy

International Energy Agency (IEA) announced last week that 60million barrels of crude oil will be released to the market.

This is to cushion the shortfall in supply by OPEC, as a result of the ongoing conflict in Libya and a few other Middle East Countries. The United States also announced its readiness to release half (30million barrel) of the proposed amount by IEA from the Strategic Petroleum Reserve.

This initiative is another effort to boost global economic recovery after the worst recession in decades, and ensure global economic stability after a faltering pace of recovery. It is expected that the steps taken by IEA will help moderate the recent high global inflationary economy caused by rising crude oil prices.

The measure might also help to brighten the declining credit outlook of major economies by rating agencies due to huge fiscal deficits and sovereign debt crisis especially in the euro zone.

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