In A Flippin' Nutshell
November 27th 2006 05:01
This is what the problem is...Well one of em...
New Delhi, November 26: Drawing the world’s attention on the need to put an end to how the current world crude oil prices were being determined on a purely “speculative” basis, finance minister P. Chidambaram today pointed out that the country’s growth story could have been far better but was being “robbed” of attaining higher GDP growth figures on account of the high crude oil prices.
Enforce transparency!Infra improvement critical to 10% growth target: 11th Plan paper PM urges faster free trade pact with AseanFTA with China not a viable option: India IncDon’t spook them
Speaking at the India Economic Summit held here today, the finance minister said that the manner in which the crude prices were currently moving shows that these are not based on demand and supply factors but were driven by speculative forces.
He specifically drew attention to how the crude oil prices recently dipped from a high of $78 per barrel to $55 per barrel when there was no real or significant change in the demand and supply of oil. This, he said, was an indication that crude prices were being determined on the basis of speculation and not on the basis of demand and supply factors.
The FM said: “I continue to say that it is speculation driven and the world must come to some kind of understanding between oil producing countries and oil consuming countries to how these shocks can be reduced. We are at risk here.” For a country that is clocking an over 8 per cent growth, Chidambaram said “India is being robbed of 1 per cent (GDP) growth” on account of the high crude oil prices. He drew the attention of how the country’s future generations would have to pay for this speculative behaviour as currently the government has to take recourse to oil bonds to cushion the impact of the high crude prices.
As India’s growth has implications for the growth of other countries as well, he said that there was therefore an urgent need for some intervention from both the producer countries and consumer countries to ensure that crude oil prices move within a band of prices —- a band where both the producer countries and consuming countries are not hurt either on account of low prices or on account too high prices.
High global crude prices was one of the six issues that were identified for “India in a world of risk”. While Chidambaram said that he viewed the potential risks as opportunities for the country, on the issue climate change, he said that it would be unfair for the developed countries to ask rapidly growing developing countries such as India and China to reduce their energy consumption.
He added, “China and India are not running away from the responsibility (towards addressing the issue of climate change) “ and said that the fair option would be that the developed countries give the required technologies to the developing countries to deal with this issue.
Blogtommy.com
New Delhi, November 26: Drawing the world’s attention on the need to put an end to how the current world crude oil prices were being determined on a purely “speculative” basis, finance minister P. Chidambaram today pointed out that the country’s growth story could have been far better but was being “robbed” of attaining higher GDP growth figures on account of the high crude oil prices.
Enforce transparency!Infra improvement critical to 10% growth target: 11th Plan paper PM urges faster free trade pact with AseanFTA with China not a viable option: India IncDon’t spook them
Speaking at the India Economic Summit held here today, the finance minister said that the manner in which the crude prices were currently moving shows that these are not based on demand and supply factors but were driven by speculative forces.
He specifically drew attention to how the crude oil prices recently dipped from a high of $78 per barrel to $55 per barrel when there was no real or significant change in the demand and supply of oil. This, he said, was an indication that crude prices were being determined on the basis of speculation and not on the basis of demand and supply factors.
The FM said: “I continue to say that it is speculation driven and the world must come to some kind of understanding between oil producing countries and oil consuming countries to how these shocks can be reduced. We are at risk here.” For a country that is clocking an over 8 per cent growth, Chidambaram said “India is being robbed of 1 per cent (GDP) growth” on account of the high crude oil prices. He drew the attention of how the country’s future generations would have to pay for this speculative behaviour as currently the government has to take recourse to oil bonds to cushion the impact of the high crude prices.
As India’s growth has implications for the growth of other countries as well, he said that there was therefore an urgent need for some intervention from both the producer countries and consumer countries to ensure that crude oil prices move within a band of prices —- a band where both the producer countries and consuming countries are not hurt either on account of low prices or on account too high prices.
High global crude prices was one of the six issues that were identified for “India in a world of risk”. While Chidambaram said that he viewed the potential risks as opportunities for the country, on the issue climate change, he said that it would be unfair for the developed countries to ask rapidly growing developing countries such as India and China to reduce their energy consumption.
He added, “China and India are not running away from the responsibility (towards addressing the issue of climate change) “ and said that the fair option would be that the developed countries give the required technologies to the developing countries to deal with this issue.
Blogtommy.com
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