The International Energy Agency has issued a message to the world that high oil prices pose a threat to the stability of an already fragile recovering global economy. The IEA went on to recommend that oil-consuming countries boost efforts to cut back on oil usage. The UN Food and Agricultural Organization also announced this week that the Food Price Index has surpassed 2008 levels driven in large part by the increase in world energy prices.
Bliss Baker, spokesperson for the Global Renewable Fuels Alliance, says these sky-rocketing crude oil prices are already having an impact on other commodity prices and food inflation. Baker says the IEA's warnings should be a wakeup call to all countries to reduce the crippling reliance on crude oil.
In 2008, biofuels were blamed for commodity price spikes and resulting food riots. These allegations have since been proven wrong in a number of significant reports published by several organizations. A September 2010 report by the UN FAO has suggested that increased demand for biofuels will help revitalize the worldwide agricultural sector without putting our secure food supply in jeopardy.
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