Oil Price Crash – What’s in store for India?
By Archana Mavnur* Oil as a commodity has come to run the world for a long time now. It influences other commodity pricing and world power. The OPEC member countries have had the power over oil production, with Saudi Arabia contributing the maximum to the production and exports. However, the ever increasing oil prices have received a jolt several times in the past with the prices falling, causing an impact on the oil exporting countries. Oil prices have dropped to $ 50 a barrel since mid-2014 from $ 105 per barrel. Though quite a few parallels could be drawn from the 1986- 87 fall in prices, few other independent causes also lead to the fall of oil prices. The shale oil production in the US which increased about 70% since 2008 decreased the dependency for the US to import oil from the OPEC nations, causing a drop in oil prices. During the period of 1986-87 also the world witnessed an increase in the supply of oil from oil tanks in North Sea and Mexico because of which oil...