Oil: Are India and China inflating a global bubble?

Risk & Return
Oil: Are India and China inflating a global bubble?

Sunday, 30 January 2005
by Paul Mampilly
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The price of oil declined at the end of 2004 and is now approaching $50 again. Reasons provided for the increasing prices are supposed high demand because of the booming economies of China and India and the recent cold weather in parts of the US and the approaching election in Iraq.

Both India and China, extrapolating the current trend (China: 5.5 bill. barrels per day and India: 2 bill. barrels per day) to determine their long term oil needs, have decided that a crisis is impending. With this in mind, each country has sent its corporate minions to shop for oil assets around the world.

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