Oil prices on a rise

Crude prices continued to rise and touched $121 a barrel something which we couldnt image 6 months ago. The situation seems to be quite alarming as the need for crude still remains unfulfilled and the houses are expecting the price to rally futher. This i think could have a very negative effect on the growth of the economy. The govt too is not in a hurry to raise prices of fuel as it is already busy trying to cool down rising inflation. This would inturn lead to more and more of subsidies and is not a good news for oil marketing companies.