Soros says oil prices set to rise more

EU

Crude oil prices are set to rise further and efforts to persuade producers to increase output will not work, global hedge fund manager George Soros warned on Wednesday.

Under pressure from truck drivers, farmers and fishermen, EU leaders will discuss their response to soaring energy prices at a summit on Thursday and Friday, although they are not expected to agree measures to offset price rises. “Rather than expecting energy prices to go down somehow, we should accept that it must go further up first for us to be able to solve the problem (in the long term),” the Hungarian-born billionaire told reporters in Budapest.

Soros said that shifting to new energy sources was the only long-term solution to what he described as a process of declining reserves and rising costs of extraction. “There are also huge opportunities in reducing energy consumption, but (crude) prices must go up first so as to encourage people to consume less,” he said. Soros is one of the world’s most famous hedge fund managers. He said the woes of the global financial sector, caused by the US mortgage crisis which has punched holes in banks' balance sheets, would be long-lasting and would spill into the real economy, and the US and Britain the most exposed.

Economic difficulties were already generating political tensions shown when Ireland’s voters rejected the European Union reform treaty last week, Soros said. “The attitude of the Irish people to their economy has, no doubt, influenced their reaction at their referendum,” he said. (Reuters)

ADVERTISEMENT

Pandemic has only moderate impact on big companies Analysis

Pandemic has only moderate impact on big companies

Parl't to vote on groundwork for commercial accommodation ra... Parliament

Parl't to vote on groundwork for commercial accommodation ra...

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest re-launches airport shuttle bus City

Budapest re-launches airport shuttle bus

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.