It is certain that the oil prices will go even higher. At least this is the message the world got from the vague assurance that Saudi Arabia gave in spite of the strong U.S. pressure and the aggravated global alarm over oil prices. The whole world waited to see if Saudi Arabia would agree to take aggressive steps to find a solution. No, there is every indication that it is not going to do it.

In another couple of days, it might well be $150 per barrel. On Friday it was $135, more than double of what it was a year ago.

Saudi Arabia has condescended to increase oil production in July, if the market requires such increase. This by no means is any indication of urgency.

There is some substance in what the Iranian President Mahmoud Ahmedinejad says. According to him, oil companies should abandon the dollar in favour of a combination of currencies. According to him, the hike in oil prices is not in anyway due to a drop in supply, but on account of different conditions. Only a stronger Dollar and increase in oil supply can in the long run solve the problem These are not going to happen immediately.

And so, how will the world deal will this economic pain? There is no panacea in sight. We have to necessarily go for alternate sources or perish. May be , we may have to move toward nuclear power and/or change the energy-consumption habits. Go back to nature. Let's dump the car and perambulate. Let's turn to the bullock-carts again. Let us lean more on solar energy. Let's turn the clock back.