§ Mr. Skeetasked the Chancellor of the Exchequer, in view of present OPEC 178W proposals to modify the price of crude oil to permit a percentage increase to offset the depreciation of the dollar, what would be the estimated cost to the United Kingdom of a 5 per cent. to 8 per cent. allowance.
§ Mr. Robert SheldonThe deficit on net United Kingdom trade in crude oil has recently been declining as the volumes of oil imported have declined and the volumes of oil exported have risen. Assuming that the current dollar-sterling exchange rate is maintained and that the volumes of crude oil trade were to run at the average monthly rate of the last six months the effects of 5 per cent. and 8 per cent. increases in the current dollar prices of crude oil would be to worsen the crude oil trade balance by £9 million and £16 million per month respectively. In addition to this direct effect, a higher oil price would, by dampening world activity, tend to reduce United Kingdom exports below what they would otherwise have been.