Oil on the rise on expectations of weaker demand!

With the oil prices on the rise again, the OPEC has taken the new move in an effort to shore up its losses against a perceived loss. If that sounds a mouthful, the OPEC is playing with the Crystal ball and it seems that the ball is telling them that all is not golden on the Oil front.

OPEC seems to have seen the future and has started moving towards a possible cut in the output. Naturally, this has set the Oil prices on the move once again and this time they are planning to stay up for a long while. As a private consortium, the OPEC is free to do what it wants but it should also take note that any such moves aimed only at shoring up its profits is going to increase the strident voices that are opposed to the amount of power that OPEC wields.

These voices have been getting strident of late and with reason, with the Oil prices pretty much dictating the prices of other essential items from food to clothing, more and more countries are becoming uneasy with the fact that OPEC still acts as a private body, one that controls a huge amount of power. There is talk of bringing the OPEC under the direct authority of the United Nations, one that may well see the Oil prices being regulated and the production units becoming more productive!

Oil price hikes?

With the oil prices soaring new heights is it any wonder that the crunch is being felt in all the world markets?India is no exception to this and today many of the oil companies were clamoring to the PM's office for a hike in the oil and other fuels that they provide to the common man.they have often taken the brunt of the rising oil prices and the common man for whom such essential fuel is subsidised,hardly feels the punch.but as the oil companies in India have pointed out,this sort of situation cannot go on forever and that sooner or later,the Indian public would have top be exposed to the Oil tango that is felt all over the world.so sooner or later the government of India like all the other governments all over the world will hike the prices up,it is just a matter of time.probably this may happen sooner than later!