News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

Home  » Business » BP rubbishes India's claim on oil speculators

BP rubbishes India's claim on oil speculators

Source: PTI
August 06, 2008 15:47 IST
Get Rediff News in your Inbox:
The world's third largest energy firm BP Plc has rubbished India's claims that oil speculators are responsible for a global surge in crude oil prices, saying high prices were a result of production struggling to keep pace with the demand.

"Speculators, or more accurately financial investors, are no fools. Just as in any other financial market, so in the market for oil - they are a consequence and not a cause of the tight underlying situation," BP Plc chief economist Christof Ruhl told PTI.

India has maintained that crude prices above $60 per barrel were a result of excessive speculation in markets like NYMEX of New York.

"They (financial investors) invest where they see good opportunities and divest where they see demand falling short of supply and therefore expect prices to fall," Ruhl said.

When asked how much of the rally in crude oil prices could be attributed to a surge in demand from India, Ruhl said that India, like many other countries is contributing to the rise in demand for crude oil, with consumption levels clearly above the global average of 1.1 per cent.

India consumed 2.7 million barrels oil per day in 2007, making it the world's fourth-largest oil consumer after the US, China and Japan.

Globally, India's consumption is just 3.3 per cent, which consequently grew by 6.7 per cent, one of the fastest growth rates among the world's biggest 20 oil consumers.

He added that blaming "speculators" was like putting the cart in front of the horse and then flagellating it for not moving.

"Investors follow expectations, which are following real developments, and real production and consumption numbers," Ruhl said.  

World's top 10 consumers of oil

Get Rediff News in your Inbox:
Source: PTI© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 

Moneywiz Live!