Tuesday, September 9, 2008

Oil on the Boil


Dear Readers,
India imports roughly three qtr of the country's total req. of crude oil. When American troops entered Baghdad in March 2003; world oil prices were less than $25barrel. Five years later, prices have risen more than five fold, implying a doubling of prices every year. crude oil prices touched $135/barrel. On May22 came down slightly and then rose again to nearly june9th.
There are expectations that once the recession in the US deepens and widens, price would fall.
On April'05 Maruti had talked of "Super Spike" in oil price. He had said that prices could rise to $105/barrel over the next 3yrs. The recession in the US was meant to depress oil demand and hence, prices. The demand for diseal gone up in china after the earthquake damaged regular coal based powerplants, thereby increased the demand for diseal genereted.

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