The Ever Increasing Crude Oil Price Rise
You must have come across the headline "Crude Oil prices on all time high" a number of times, actually, this seems to be a common headline.
Increases in the price of crude oil usually results in a rise in prices of food and other regular items as these are transported from one place to another via trucks and other transport facilities that run on by-products of crude oil.
It may be just another temporary season of economic or political issue or it can be a teaser of the price hike cycle that is about to bring an abrupt rise in prices in the next few years.
Obviously, there are a number of political and economic causes that are affecting crude oil prices. The unstable and abrupt political situation in the Arab and gulf countries is also a core reason that has led to a great impact on the worldwide oil producer countries.
There is real conviction in the fact that consistent rise in crude oil prices is a dangerous proposition. This often leads to global inflation. Rising inflation would pressurize Government to take steps to increase interest rates. All the developing countries across the globe would struggle to meet their routine feed requirement when crude oil price skyrocket.
According to some reliable sources, the rise in prices of crude oil always appears to be the toughest challenge that faces the Indian government. In the past rises in crude oil prices has led to dissatisfaction across countries and experts suggest that this problem can put global developments at risk. With so much happening across the world, talks between oil producing and oil consuming countries are always ongoing and chances are that India is taking initiatives in the same.
Today, trading in oil futures on the floor of the New York Mercantile Exchange (NYMEX) increasingly drives crude oil prices in the US. Increasing consumption of petroleum products has resulted in increasing dependence on imported crude oil supplies. While futures trading will continue to determine crude oil prices in the foreseeable future, crude oil conservation and the development of alternative and renewable energy sources are both essential to ensure a stable energy supply and crude oil price in the longer term.