Friday, November 9, 2007

New consumers are playing a big role in driving oil demand

Are Indian oil companies ‘bidding on the riskiest properties’ overseas?

Oil price hit $84 a barrel a few days ago, amidst fears that the Kurdish rebel problem would lead to the snapping of Iraq’s supplies. And closer home, despite an appreciating rupee, we have been oscillating between ominous expectations of petrol and diesel price increases, to political assurances of ‘no hike now’ with short shelf life, though.

“An interesting and scary thing about high oil prices is that we realise how incredibly interconnected global economies are, and how little we understand the consequences of these connections,” observes Ms Lisa Margonelli, the author of ‘Oil on the Brain’, in the course of an exclusive interaction with Business Line.
“Despite the deep interconnections, we live very differently: after all, Americans continue to use this enormous amount of fuel per capita and that is simply not available to other consumers,” she adds.

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