game of crude oil...........

 

for the third time in the past few months estimates of global oil demand have been revised upwards

now crude oil prices are projected as high as 100$/barrel and infact its almost around 90$/barrel and opec ministers are comfortable with thease prices they are saying that we are not thinking to increase the production level of crude because we are having adequate inventories.

which is not very surprising .even during past episode of demand increasing the pursian gulf countries is not increase the production level in fact in the upward direction of oil price in the era 2004-2008 the increase in production is only 1million barrels a day which is not at all satisfactory. some analst says that keeping production low contributed to price increase in no small level.just look back to 1974 the production is same now while demand is increasing day by day from 1980 the strategy of opec has changed now they are increasing their crude reserve instead of production and now they will produce only upto that level which is required to trade for other things from the remaining part of the world because they know increasing price will give huge to them from their reserves in the long run and this situation is not good for our economy 

now once again price of crude oil will increase just because the inflation is felt below the expected level in china and the picture is still not clear in egypt after getting throne out of mubarak and as well as american economy is recovering i think prices would be around 90 to 100$ now indian should prepare to live with the inflation rate upto 9 to 10% upto 10years because this will increase your electricity,fertilisers major input cost like naptha & bitumen ...........

so inflation will continue in india ............