As Opec the oil producing cartel warned that the price of oil  could keep rising to  $200 a barrel some mystery shrouded the seemingly unstoppable price hikes in gas  following  Big Oil posting  massive first quarter profits and the US Government saying  no short term quick fix to bring down prices of gasoline and that greater effiency and alternative sources were the long term solution . 

Shell, the world's No. 2 non government-controlled oil company by market capitalization, said net income, excluding unrealized gains from changes in inventory values, rose 12 percent to a record $7.8 billion.

Industry No. 3 BP said profits, calculated on the same basis, rose 48 percent to $6.6 billion.

"It's an eye opener for investors, showing what the high commodity price environment really, really means in terms of earnings for the oil sector," Paul Andriessen, oil analyst at Fortis Bank in Amsterdam.

Great news for the fortunate few then.

Overall though, the combination of rising gas and food prices is really hurting consumers and the economy and the Government's message on reigning in usage and alternatives fuels wont be well recieved either as transport costs cripple busineses, whose usage is fixed,  and add to already soaring food prices .Its a chain reaction of spiralling costs and prices with small businesses and consumes catching the worst of it.

 
Opec president Chakib Khelil blamed the falling value of the US dollar, which makes other assets, including oil, more attractive for foreign investors. Snags in Nigerian and British supplies due to strikes , which affected 2% world output, are problematic but fleeting problems. Opec has declined to up productionquotas claiming world supplies are adequate. 

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