Unidentified author, 15th January 2003. "Oil price rise despite OPEC increase", Daily News (Tanzania)

The price of oil has increased due to the supply of oil decreasing in the International market while the demand for it is increasing. A vast majority of the population will be affected by the increase of the price as there is a high demand for oil and there is no competing substitute to replace it. It will affect the economy of developing countries such as Tanzania where more foreign currency will be used to import the oil and hence the importation of capital goods, such as machinery will be decreased. As oil is inelastic (% change in price is greater then % change in quantity demanded) the expenditure of households will decrease as more money will have to be spent on the oil opposed to the amount they had to pay before the price rise cutting down the expenditure of other goods.

Despite this pessimism of oil price increasing, theoretically the developing countries that produce oil will benefit from the price rise. This is due to the fact that their economy will improve as more money will come in to the country and foreign earnings will increase.

All in all the OPEC countries should increase the supply of oil in order to make the price stable, so that demand and supply are equal bringing an equilibrium price to the goods so that consumers will not suffer and the global economy will not be threatened by the price rise.