Prices of crude oil in the world market is the always a concern for all of us.
RM1.92/liter is the government subsidised price, and there are fears that it will rise again in the future, despite the promise of the government of not to increase it again this year.
Why is it that the crude oil price increasing?
Think..of the equilibrium price we learnt yesterday.
Among others, it is due to the shortage/deficit of oil/petroleum in the world market.
Next question...why is there a deficit?
Excessive demand for oil/petroleum, that's why? ( it has become an obsession)
Then why is there excessive demand then????
Because of fear due to uncertainties in the major petroleum producing countries, like Iran and Nigeria.
Excerpt from the article from Bloomberg.com,
Crude oil rose to a record $75.15 a barrel.....
(1)The standoff over Iran's nuclear program has intensified, increasing the chances of sanctions against the world's fourth- biggest oil producer.
(2)Rebel attacks in Nigeria have shut about 20 percent of output in Africa's biggest oil producer.
``Any kind of supply disruption will send us up toward $100,'' said Peter Schiff, chief executive officer of Darien, (oh no!!)
The link to the article
http://www.bloomberg.com/apps/news?pid=10000087&sid=aaCC8zoSffrw&refer=top_world_news
No comments:
Post a Comment