After touching a record high of 147.27 dollar per barrel on 11th July, currently the crude oil prices is hovering in range of 110-120 dollar per barrel. A drop of about 20 percent from the peak level.
This is a matter of relief to everyone as this has lead to reduction in food item prices like Soyabean oil, Palm oil, Corn etc.
However, oil prices are still too high if we look into the current demand-supply situation. As per The International Energy Agency(IEA) report, at the end of June, the production at 86.4 million barrel per day (mbpd) exceeded the prevalent demand of 86.2 mbpd.
If we compare current oil prices with previous year prices, these are too high. It clearly shows that still speculators are manipulating oil prices.
Therefore, I feel we should continue our reduced oil consumption for personal transportation for next 2-3 months as well so as to check the rampant speculation.
Moreover, as far as possible, we should avoid consuming imported fruits and vegetables. For example - In India, starting of organised retail like Reliance Fresh, Big Bazaar etc. had made imported fruits and vegetable available to common man. And, at times we do consume these for change and pleasure even though local farm produce are available in plenty. A lot of hydrocarbons are consumed in transportation and storage of these imported perishables.
By avoiding consumption of imported perishables, we can reduce the oil demand which in turn will soften Crude Oil prices.
Monday, August 11, 2008
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