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Q.

Crude oil price is steadily increasing in spite of present global economic gloom. Does it defy logic? Your views?

Tags: money, crude oil, news & events
Asked by Good Citizen, 01 Oct '12 01:28 pm
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Answers (3)

 
1.

If OPEC is to be believed, they have nothing to do with the rising crude oil prices. The cartel says, the organization has not curtailed production to increase the price of oil.The uncertainties in the politics of Middle East countries, especially the Iran issue, is pushing up oil prices.
Even with slowing of global economy, dependence on oil import can not be curtailed. There may be a marginal decrease in the volume of import of oil due to cut in production. But there are other areas where oil has to be imported in sufficient quantities to set the country rolling, like passenger traffic, freight movement, winter heating etc.
So far as oil is concerned, its price does not follow the simple principle of demand and supply. Its price may increase even when there is a glut in the international oil market. Its price is very sensitive to political turmoils in the Middle East and also the uncertainties of World politics and its economy.
Answered by thampy chacko, 01 Oct '12 07:58 pm

 
  
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2.

The OPEC is using its monopoly to exploit the crude importing countries.We can not do any hing other than reducing our consumption which may force them to reduce prices.
Answered by Damodar Biswal, 01 Oct '12 06:54 pm

 
  
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3.

Oil producing countries are taking advantage of situation and blackmailing world
Answered by Ramesh Agarwal, 01 Oct '12 01:29 pm

 
  
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