Insight - Rising oil prices will draw response from consumers

Cost-efficiency:A motorist holding a cable to charge an electric utility vehicle in France.High oil prices will accelerate the switch to alternatives such as electric vehicles. —Reuters Cost-efficiency: A motorist holding a cable to charge an electric utility vehicle in France.High oil prices will accelerate the switch to alternatives such as electric vehicles. — Reuters

OIL prices have risen above the long-term average, once adjusted for inflation, and are likely to encounter increasing resistance from consumers if they continue to climb.

Front-month Brent futures are trading around US$75 (RM311) per barrel compared with an inflation-adjusted median of just over US$70 (RM290) since the start of the century.