Oil Prices - brief for common men World Scenario US excessive increase in oil production / gas production from Shale made them export the oil. OPEC dont have much buyers now as US dont want them to sell to China. Kuwait, Iraq and Venezuela selling oil in South American markets at lower prices despite of US and OPECs pressure Saudi is puzzled as their oil production is on highest peak and they have massive investment in country, so cutting down production is a big challenge. Oil prices dropped down from $ 118 to $ 82 / bbl Pakistan For Pakistan its an extremely good news. Govt. Will keep on decreasing oil prices to gain political benefits and petrol prices will go possibly to Rs. 83/litre. Country spend 40% of import budget on petroleum products and raw oil. Lower oil prices will cut down expenses and thus should impact economic wheel in positive way. Pakistans current energy mix is 50% on Natural gas versus 22% on oil so this is not necessary that electricity price will go down as 28% of total gas used for electricity production. In last 9 months countrys total oil production increased from 73,000 bbl/day to 98,000 bbl/day but unfortunate part is we cannot refine this oil with local refining capacity. Now we have to export the raw oil and importing refined products which is an area to work on. The whole idea to explain the scenario is to create awareness so the people should not get influenced by the political claims made by monkeys. This is nothing to do with country politics and we should look for ways to improve our economy.
Posted on: Mon, 03 Nov 2014 05:54:10 +0000
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