85 million barrel of oil is supplied daily in the world ,but the demand is 86. 4million barrel. Price of the oil will keep on rising up until the price kills the demand .Market in United stated looked very gloomy Dow was down almost 400 point and crude oil was closed at $ 138.5 record high .People are blaming diff rent factors to the rise in the oil prices which includes future trading ,geopolitical crisis in Middle east and Africa and high supply from emerging nation . Situation in united states is defiantly bad for sure .Working for one of the biggest auto motive dealership in the world I am very confident the entire country is suffering from the slow down especially the auto motive industries and housing market . Still being trained to be an economist , my personal comment about the econ of united states is that it has not yet see the rock bottom yet .
Lets now look at the impact of oil prices in south Asia especially Nepal and India.India’s Congress party-led government increased prices at the nation’s fuel pumps on Wednesday, prompting a backlash from rival parties and threats of street protests.The government raised retail prices of petrol, diesel and liquid petroleum gas by 8-17 per cent to reduce the burden of fuel subsidies expected to jump to $57.8bn this year – more than 3 per cent of gross domestic product.
In a televised address on Wednesday night, Manmohan Singh, Indian prime minister, urged citizens to conserve fuel, saying the price rises were “inevitable” to relieve pressure on the state-run oil companies that have shouldered the burden of the oil price surge with the help of government bonds.
“I know that the price increases we have had to announce today will not be popular, even though they are only modest,” Mr Singh said.
India, which imports more than 70 per cent of its oil needs, has been under pressure to increase fuel prices for months. But with inflation breaching 8 per cent in recent weeks, well beyond the central bank’s 5.5 per cent comfort zone, the government has delayed the move.
With an election due in less than a year, the Congress party-led United Progressive Alliance coalition government fears inflation will hurt the nation’s hundreds of millions of poor.
In NEPAL Last week, when the state-owned and bankrupt Nepal Oil Corporation (NOC) issued an SOS call saying it was totally unable to supply fuel without government subsidy, the government responded by throwing Rs 800 million at it.
But that measure could not even help for a week. The NOC has once again warned that the crisis is going to deteriorate as its monthly losses have soared to whopping Rs 2.7 billion a month.
Fuel price in Nepal which is on the artificial life support unit it is soon to be dead .
what could be done to save the people from Himalaya to kanyakumari ??
Saturday, June 7, 2008
Wednesday, June 4, 2008
3% of global arms bill can end food crisis
More than 850 million hungry people around the globe can enjoy a better life if the world sets aside less than 3 per cent of what it spends on purchase of arms every year, for development of agriculture.
Pointing out the stark realities of the wasteful spending, FAO director general Jacques Diouf on Tuesday appealed to world leaders for USD 30 billion a year to re-launch agriculture and avert future threats of conflicts over food.
In his opening speech at the FAO's Rome Summit called to defuse the current world food crisis, Diouf noted that in 2006 the world spent USD 1.2 trillion on arms while food wasted in a single country could cost USD 100 billion and excess consumption by the world's obese amounted to USD 20 billion.
"Against that backdrop, how can we explain to people of good sense and good faith that it was not possible to find USD 30 billion a year to enable 862 million hungry people to enjoy the most fundamental of human rights: the right to food and thus the right to life?" Diouf asked.
"It is resources of this order of magnitude that would make it possible definitely to lay to rest the spectre of conflicts over food that are looming on the horizon," he added.
"The structural solution to the problem of food security in the world lies in increasing production and productivity in the low-income, food-deficit countries," he declared.
“This called for innovative and imaginative solutions, including partnership agreements... between countries that have financial resources, management capabilities and technologies and countries that have land, water and human resources”, he added.
Pointing out the stark realities of the wasteful spending, FAO director general Jacques Diouf on Tuesday appealed to world leaders for USD 30 billion a year to re-launch agriculture and avert future threats of conflicts over food.
In his opening speech at the FAO's Rome Summit called to defuse the current world food crisis, Diouf noted that in 2006 the world spent USD 1.2 trillion on arms while food wasted in a single country could cost USD 100 billion and excess consumption by the world's obese amounted to USD 20 billion.
"Against that backdrop, how can we explain to people of good sense and good faith that it was not possible to find USD 30 billion a year to enable 862 million hungry people to enjoy the most fundamental of human rights: the right to food and thus the right to life?" Diouf asked.
"It is resources of this order of magnitude that would make it possible definitely to lay to rest the spectre of conflicts over food that are looming on the horizon," he added.
"The structural solution to the problem of food security in the world lies in increasing production and productivity in the low-income, food-deficit countries," he declared.
“This called for innovative and imaginative solutions, including partnership agreements... between countries that have financial resources, management capabilities and technologies and countries that have land, water and human resources”, he added.
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