World begins to smart from oil's too rapid rise

Whatever pain the U.S. feels, it is less than that endured in Africa, where the benefits of international aid to its non-oil producing countries have been wiped out by increased oil costs, a study by the International Energy Agency found at the end of last year.

For emerging economies, an ever bigger burden is financing subsidies their populations consider a birthright.

Major consumer countries like India and China are spending billions of dollars to keep transport costs low, while some smaller players, such as Syria, have decided to stop paying up.

PROFIT AT A PRICE

For all big business, including oil companies, soaring fuel costs can cut profits.

The main difference from the oil crisis of the mid 1970s is that the world is less energy intensive and better at adapting, but its efforts are beginning to eat into growth as firms scramble to reduce the costs, such as wages, they can contain.

"The speed of adapting to high oil prices has been gathering pace ... and will no doubt intensify if the oil price continues to rise," said Richard Batty of Standard Life.

"However, higher oil prices on a multi-year view remain a hit to corporate margins."

Among the first to suffer are airlines, some of which are facing bankruptcy because of higher fuel costs.

The big oil companies have enjoyed record earnings, but they are also paying a price.