India has about 18-30 days of oil reserve in place to cater to any uncertainties in largest imported commodity of India. With global crude price racing towards its nadir, its seems most appropriate time to increase our reserve capacity, to say, about 60 days which will act as cushion against sudden volatility in prices sometime later. After all, reduction in oil price isnt happening because of any reduction in demand but increase in production by USA to counter Russian oil production. USA will do every thing possible to counter resurgent Russia and growing partnership between Russia and china. Russia is progressing based on its thriving oil business which happens to be 2nd largest oil producing nation in world. Reduced oil prices will play havoc with Russian economy but it has potential also to again bring back world economy on the brink of another economic crisis. We can only hope good sense prevails among world leaders and avoid another cold war like situation. Any way, currently situation is favoring our country, so we should take optimum advantage of it.
Posted on: Mon, 15 Dec 2014 17:16:27 +0000
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