Can we not analyze any economic issue without resorting to political bitching? I wish all of us try to understand the real reasons and implications of the current crisis and not waste or energies in stupid politics. There are two ways to look at the decrease in oil prices from $ 135 to 123. It can be bad timing as Mr Shenoy says. It can also be true that it was the increase in domestic oil prices in India that brought about the fall. Unlike the previous two oil crises, the sharp price increase this time around is not account of the demand supply gap only. The global financial majors who have shifted their attention to oil futures are behind the current spate of oil price increase. As a result even the spot market for oil is behaving like a stock market driven by sentiments. The fall in oil prices was indeed triggered by the sentiment created by the oil price increase announced by India and the emergency G 8 meeting that was then in the offing. In fact if India had acted in advance, perhaps the slide would have started much earlier. If international oil prices are to be kept in check, India and China must send strong signals that call the bluff. They must announce series of steps aimed at reducing oil dependence and improve energy efficiency in a big way. I know it is difficult to keep domestic oil prices linked to volatile international markets. It would not also be economically prudent to let rogues at international commodity exchanges to dictate to developing countries.
