Title: How Oil Prices Affect the Price of Food | OilPrice.com
Headings: How Oil Prices Affect the Price of Food
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Content: Oil is often also used as input in agricultural chemicals. Oil price increases therefore put pressure on all these aspects of commercial food systems. Figure 1: Evolution of food and fuel prices, 2000 to 2009
Sources: US Energy Information Administration and FAO. Â
Thus there is concern that high and volatile prices of crude oil may cause food prices to continue to increase (Bloomberg, 2011). Â
Moreover, as oil prices rise, so does demand for biofuels, which are the only non-fossil liquid fuels able to replace petroleum products in existing combustion engines and motor vehicles. But biofuels are often made from corn and other agricultural products. As demand for these alternative fuels increases, crop prices are forced upwards, making food even less affordable. Â
Export-led agricultural strategies also increase the worldâ€™s vulnerability to high oil prices.