20.10.2014 - More clarity needed in the most volatile commodity oil
Companies need to know what returns they will get after investing risk capital. When the previous government wanted to double natural gas prices, the oil industry said the new price was, at best, a good interim step towards total market freedom. The government needs to keep in mind two things: one, India needs new discoveries; two, state-run firms have failed to make significant discoveries for a long time. In framing policies, the government cannot take comfort from the fact that global crude oil prices are in a bear market, having fallen 25% since the June peak of $115. India should be prepared for sudden jumps in prices even as the short-term outlook is rosy for consumers. The International Monetary Fund has downgraded its forecast for global economic growth, while the International Energy Agency has scaled down its forecast for oil demand for the fourth consecutive month...............................................Full Article: Source
Print