MEMBER'S LOGINX
| Invalid Username / Password | ||||||||
| Invalid Captcha | ||||||||
|
||||||||
| Sign Up | Forgot Password? | ||||||||
India's Third Giant Leap
This Could be One of the Biggest Opportunities for Investors
- Home
- Todays Market
- Indian Stock Market News March 8, 2011
Are high oil prices a big concern? Tue, 8 Mar Pre-Open
The Arab oil embargo of 1973 caused oil prices to hit the roof and brought pain to many countries. It's almost 40 years since and the world is now witnessing a wave of unrest spreading in the Middle East. So the question being asked is how big is this crisis in terms of wreaking havoc in the global oil market?
So far, the response has not been overly catastrophic. Yes, production in Libya was curtailed and oil prices breached the US$ 100 a barrel mark. But as soon as Saudi Arabia announced more production, oil prices once again retreated. Not just that, the scenario has also altered compared to what it was way back in 1973. Governments now have more stockpiles and Saudi Arabia is sitting on huge reserves of spare capacity.
This is not to say that problems do not persist. From a longer term perspective, as supply fails to catch up with demand to depleting oil production, oil prices are expected to remain firm. Higher oil prices also fuel inflation which ironically was one of the root causes of the revolutions in the Middle East and has been a source of headache for governments in emerging countries such as China and India.
Right now shortage of food has emerged as the bigger problem as unpredictable weather patterns and change in lifestyles and diet have hampered food production and brought about a structural shift. And so higher oil prices have been relegated to the background as problems of food shortage and rise in food prices have taken centrestage. That said, the real problem in the global oil market will be manifest when unrest begins to unravel in Saudi Arabia. As the Economist has pointed out, the kingdom has many of the characteristics that have fuelled unrest elsewhere, a repressive regime being one of them. Saudi alone accounts for a significant share of the global oil market. So a disruption in production there is bound to have serious repercussions on global oil prices. Indeed, with governments and central bankers already at their wits' end as inflation and food problems continue to mount, this is one problem they will be glad to see not playing out.
For information on how to pick stocks that have the potential to deliver big returns, download our special report now!
Read the latest Market Commentary
Indian Share Market Update: Top Gainers and Losers
Equitymaster requests your view! Post a comment on "Are high oil prices a big concern?". Click here!
2 Responses to "Are high oil prices a big concern?"
H. AGRAWAL.
Mar 9, 2011yes, higher oil prices r big concern to Global economy at large.
but in my view it's more to the devloped country than ,
to the emerging markets. The FII OUT FLOW that we haeve seen recently will have no choice but to return back to emerging markets as the high oil price impact at the devloped countries will be more in comarision to the Inida and China.
ABOUT EQUITYMASTER
Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.
PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
- Multibagger Penny Stocks
- Basics of Value Investing
- Benjamin Graham
- How to Invest in Gold
- How to Invest in Silver
- Best Stocks to Buy Today
- Best Small-cap Stocks to Buy
- Best Bluechip Stocks to Buy
- Guide to Penny Stocks
- How to Invest in the Share Market
- Warren Buffett - The Value Investor
- Pick the Best Multibagger Stocks
TRENDING TOPICS
Copyright © Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited).
Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap
Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407
Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com
LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.
Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
pravin k modi
Mar 11, 2011absolutely,to all over world economy.