As oil prices in international market are skyrocketing, common man would no wonder amused with this abominable infinite price rise phenomenon .Oil prices in international market are governed by simple supply-demand principle. Exponential rise of demand for oil from developing countries like India and China has certainly impacted positively to raise the prices higher. At the same time political instability, war crisis in Afghanistan, Iraq invasion and US political interference in middle-east adding its input to surging
Global oil prices.
Indian oil imports are almost 86% (2.1 million bpd) of total domestic oil consumption .This makes India very vulnerable to international Oil prices. In contrast, China produces about 3.7 million barrels of oil daily with active exploration programs in the People’s Republic. China supplies nearly all of its national oil to fuel its own economy, with very little oil exports shipped to other countries. In fact, large Chinese oil companies have bought oil properties around the world including projects in Canada’s oil sands as a way to increase energy supplies flowing into China. Similarly take an example of Russia, which produces 8% of total global oil production and uses 54% of fuel to its
own economy. After end of cold world war, Russian Economy is again booming with
large oil exports.
