Sunday, December 12, 2010
Oil demand to hit highest level ever
Due to rapid growth and development of certain nations over the past year. The worldwide demand for oil has increased to 88.3 million barrels per day. Yet, much to the relief of the American public especially, prices are not expected to spike as they did in 2007-2008, and consequently prices at the pump should remain relatively stable due to the increased production capacity of the world. China and India are largely responsible for the gross increase, as their oil consumption has increased by 11% and 10% respectively. Along the same lines, the figures on China's car consumption should indicate about a 32% increase in consumption over 2009.
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This is how the economy in China and India can affect the other economies in the world- external forces.
ReplyDeleteThe population of India is about 1.1 billion and the population of China is about 1.3 billion. Each year, both of these countries are getting more and more competitive with developmental factors. They are demanding more..and they have much more people than the U.S. too, which is also a big factor for their demand in oil.
ReplyDeleteThe Chinese and Indian economies are also expanding rapidly, with foreign investments pouring in. The increasing number of industries in those countries are largely responsible for the increase in oil demand.
ReplyDeleteIt is a good thing that prices at the pump will not be increasing, that is one thing our economy does not need right now.
ReplyDeleteAs we all know, oil is becoming less and less easy to access. Regardless to China and India's increasing population, we are facing rising oil prices. Trend have shown it and it isn't going away. - Demand is rising and supply won't be able to keep up, hence will lead to rise in prices.
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