Everyone in India believes is few stuff
1)Oil is produced in Arabia and Arabia is gold mine just because of it.
2)America creates WARs and causes so much destruction just to make sure that oil is in their control.
3)America has a lot of oil reserve they are not taking it out.
Seems like we need to pause that for moment. With American shale production shooting up on new found technique called fracking, Americans no longer import oil. They are on par with Saudi's production capacity. With this they have killed two birds in one stone. Stronger economy and Hitting Putin!! Yes, Putin. It looks like Russia has a lot of dependency on oil for its GDP and Putin's friends has the license to produce them. Similarly other countries which were making trouble for USA like Libya, Venezuala are also in trouble.
With over supply, Oil prices are crashing and anyone who depends on oil for their economy is in for soup. Can they reduce output of oil to increase the price? It is like shooting their own foot as American production capacity is on upward trajectory. So what happens now? All the western bloggers keep quoting things like Russia needs $110 oil to sustain, Libya needs $130 etc.
No one talks about production cost of American oil. What is the price needed for America to sustain its own production. Anyway we will find out in another 3 to 6 months. Who is going to blink first? Looks like a good Christmas for people in the west.
In India the government is celebrating but not the people. Government silently increased taxes on oil to keep the price same. Oil companies are using this opportunity to recover. Looks like good time for them. When is the Santa going to arrive in India? Will the bus fares, costs of edibles come down in India? I think it will never. Enjoy the free market from the bottom of the pyramid!
1)Oil is produced in Arabia and Arabia is gold mine just because of it.
2)America creates WARs and causes so much destruction just to make sure that oil is in their control.
3)America has a lot of oil reserve they are not taking it out.
Seems like we need to pause that for moment. With American shale production shooting up on new found technique called fracking, Americans no longer import oil. They are on par with Saudi's production capacity. With this they have killed two birds in one stone. Stronger economy and Hitting Putin!! Yes, Putin. It looks like Russia has a lot of dependency on oil for its GDP and Putin's friends has the license to produce them. Similarly other countries which were making trouble for USA like Libya, Venezuala are also in trouble.
With over supply, Oil prices are crashing and anyone who depends on oil for their economy is in for soup. Can they reduce output of oil to increase the price? It is like shooting their own foot as American production capacity is on upward trajectory. So what happens now? All the western bloggers keep quoting things like Russia needs $110 oil to sustain, Libya needs $130 etc.
No one talks about production cost of American oil. What is the price needed for America to sustain its own production. Anyway we will find out in another 3 to 6 months. Who is going to blink first? Looks like a good Christmas for people in the west.
In India the government is celebrating but not the people. Government silently increased taxes on oil to keep the price same. Oil companies are using this opportunity to recover. Looks like good time for them. When is the Santa going to arrive in India? Will the bus fares, costs of edibles come down in India? I think it will never. Enjoy the free market from the bottom of the pyramid!
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