Crude oil prise raised to 88 Dollars per barrel today. What r the reasons.Very soon it is going to finish.?

Tell me what India position then Do u feel this inflation is due to increase in oil prises.What measure u propose to handle this problem of inflation.Crude oil prise raised to 88 Dollars per barrel today. What r the reasons.Very soon it is going to finish.?
This is an indication of dominance of market by the capitalist forces. The rise and fall of prices is subject to maneuvering by OPEC and EU rather than being influenced by demand and supply.Crude oil prise raised to 88 Dollars per barrel today. What r the reasons.Very soon it is going to finish.?
decline of dollar and increase in demand
19-12-03 India's crude oil production rose 4.2 % in April-November to 22.117 mm tons as against 21.235 mm tons in the corresponding period last year, according to the petroleum ministry. The cumulative production is 0.7 % higher than the target of 21.971 mm tons for April-November, while for November alone the increase was 1.4 % over the target of 2.705 mm tons, an official release stated.


Dependent on imports for 70 % of its requirement, India has embarked on a multi-pronged strategy to boost indigenous production through fresh exploration efforts and redevelopment of existing proven oil fields. Recovery from the southern region business centre of the state-owned exploration major Oil and Natural Gas Corporation's (ONGC) oil fields in Andhra Pradesh and Tamil Nadu was the highest at around 137-147 %.





The lowest output was from the state-owned Oil India's oil fields in Assam and Arunachal Pradesh in the northeast, which had only around 85 % recovery. This was due to increase in water/oil ratio in a few new fields. In terms of gas, the production at 2,611 mm cm during November was 5 % higher than 2,486 mm cm in the corresponding month last year.


Between April-November, the gas production at 20,593 mm cm was 4.4 % higher than the production of 19,726 mm cm during the corresponding period last year. With domestic demand rising, reflecting growth in the industrial and transport sector, the refinery production in the country at 74.219 mm tons between April-November also showed 5 % growth over the corresponding period last year when it was 70.662 mm tons.





Overall the production utilisation of the around 116-mm-ton refinery capacity was 4.1 % lower than the target of 77.370 mm tons for April-November. The under utilisation of capacity varied from shortfall in crude availability to less demand to 30 days annual planned turnaround at Reliance refinery at Jamnagar.


The sales of petroleum products witnessed a 2.1 % rise to 54.4 mm tons in April-November compared with the same period in 2001. While diesel sales showed only a marginal rise of 0.2 % to 24.4 mm tons, petrol sales benefited by a growth in automobile sales to record 9 % rise over the corresponding period last year to 5.07 mm tons.
The price of crude oil fluctuates based on both assumptions and real information that becomes available, concerning how much oil will be available relative to demand. So when either supply is expected to be lower, due to pipeline problems or wells tapping out early or new wells failing to produce, etc. There is upward price pressure. Similarly, if new discoveries are made or new distribution agreements are forged, there are some downward price implications.





On the demand side, different seasons have different demand profiles, and weather plays a role, as does the capacity of the refineries to process the crude oil.





When you add it all up in a model, you get a sense of what the value of a barrel of oil is. Then, to provide a liquid market, we provide for the trading of futures in oil production, so that people can lock in a price today for oil to be delivered later, or they can speculate that oil will go up or down and act accordingly. Producers often hedge their positions, and lock in prices within a range to ensure profitability.





All these factors combine to create an instantaneous market price for a barrel of oil. Changes in any of them will cause a change in the price, to the degree they are considered a large enough change to affect the market price.





So, the current price of oil should reflect all of the known information at any one point in time, by ';the marketplace';. The ability of the market to fully digest all available information is less than perfect, so if you happen to have access to key information or insights that others in the market do not have, you can become convinced that the value of a barrel is higher or lower than the marketplace feels it is. And if you are a gambler, you can bet your money that you are right.





Many commodities speculators end up losing money in the end. The markets are there to efficiently transfer commodities from the producers to the users of the products. Speculators serve a useful purpose in helping to keep demand and supply in balance. But its a tough business.





Good luck.
Mandate an additional 3-5% ethanol blending in auto fuel. Basically, cars can use almost 30% (varies per engine block, some only 25%, some more) ethanol without tripping the oxygen sensor - granted, there is worry about long term corrosion of fuel lines with PURE ethanol, but it's the same as it is now, since we already use 10% ethanol.





If you want to make a personal difference, put in a gallon or two of ethanol (or E-85) whenever you fill up. As long as your oxygen sensor doesn't go on, you're fine - and even if it does, all you have to do is put a little more gas in the car and it will go off again (maybe will run a little rough for a bit).





Burns cleaner, supports farmers and domestic ramp up of ethanol production - the media is citing smaller ethanol refineries having difficulty because people think only e-85 FFV cars can use ethanol. BUNK. There's a whole list of cars that are E-85 ready, the most common of which is the 2000-2002 Chevy S-10 (Or GMC equivalent) 4 cylinder.
Partially fundamentals (supply-demand relationship) but the traders are scared that Israel or the US is going to attack Iran, which will affect supplies. Were we not in Iraq, and had we a less belligerent administration, you'd probably be looking at $50 oil or less. I mean, the Saudis can pump the stuff for under $15 a bbl. So it is hard to fathom the current pricing.





By the way, an analyst quoted in NYT today thinks the price will recede farily soon.
That is the problem which is India facing so badly.
i propse that the big name oil companies quit being so GREEDY!!
W.Partial demand and partial bidding, and the next is greed of oil companies and some lying coming from them and Govt. 1 day we have a good inventory and the next were down then we get garbage about refineries Why is fuel oil and diesel fuel the same as gas price and in some cases higher ??This should not be . From the ref's the 1st product is oil , then diesel then gasoline . they were supposed to build a ref off the coast of Maine a few yrs back but all the dumb protesters started and that killed that . We do need a few better efficient one and they best start soon . But how much are we willing to pay for corn as that starts to go for fuel then up goes the price of every thing along with the fuel oil and the diesel because of trans cost .If all this keeps up the govt will step in and nationalize the oil companies