There was hue and cry in the world, as the crude price jumped to $147+ for a barrel. And the world population today can’t think of a life without energy for which the only popular and economically viable source is the fossil oil. None of the producing companies in oil producing countries said that their wells had dried or were going to dry soon and so they are conserving by gradually reducing the production. But the speculators made the prices rise. I don’t know how much the people or the countries owning the oil fields get benefited or lose out of the day-to-day price rise or fall. I assume the baiters would have been making the maximum of the cut. With the same production and consumption too, the crude prices have now come down to $124 last week and is expected to go further down. But as the consequence of the earlier surge that made many experts predict that the price might touch as high as $250 or even $500 per barrel, the economy of many countries got huge shock. Many stock markets collapsed including our own making many losing huge amount. Prices of all the commodities went up and so the inflation rate causing sleepless nights for the prime minister and finance minister. And suddenly the whole world started talking of conservation, higher fuel efficiencies, smaller cars, or hybrid cars. I don’t know a world body can’t devise a way out to avoid this situation? Why can’t in the larger interest of the world population a uniform programme be taken up to cut down the use of crude oil gradually? Why can’t the scientists and technocrats pull together their energies to find a viable solution? Why should it be a monopoly of a country or two?
Many a time I feel the situation created by the speculators who so ever they might be is similar to those who control the market prices of onion and potato. Even at the time when there is no one to buy the produce from the farmers at the time it is ready, the consumers in India keep on paying what the traders wish to extract. Why should the price for a common item such as onion be Rs 16 or 20 a kilo? If a government and the theories of free economy can’t control the price of this essential item, how can it appreciate and affect the price of crude oil?
Can some one tell me the difference in pricing of oil and onion? Left to me, I would have gone for a differential pricing of onion charging the price of gold for onion from the oil producing countries that import our onions. The countries producing onion should get into cartel to fight with the oil producing countries.
Can some one give his opinion on my agony?