Oil and bio fuels

1. Bio fuels are derived from agricultural commodities such as sugar and corn.
2. Bio fuels are one reason why food prices are heading for their biggest increase in 30 years (the other being increased consumption of meat in the developing world).
3. Western countries have embarked on developing bio fuels as alternative energy source combating climate change.
4. OPEC challenges to reduce investments in production if they do not see security in demand. 5. This price of oil could go through the roof.
6. However, the biggest reason for underinvestment is not bio fuels but what a cartel is all about: the whole point of clubbing together is to restrict supply and force up prices.