When everything seems fine.. suddenly out of no where the oil prices shoot up to $145 a barrel.

Why would oil price go up?

The worlds largest crude producer is Saudi Arabia and then comes Canada, Russia etc. US enjoys a great relation with Saudia. World’s knowledge goes that Saudia is the largest oil exporter and US is the largest importer of oil.

Saudia claims that the supply is far more than sufficient and while US claims that more oil be pumped to reduce oil price.

Looking from the Indian point of view:

The Asia’s biggest country is China and the worlds largest workforce is India. Their economies are doing absolutely great.

IT industry growth is at 8%
Sensex above 20000 Points
Inflation is high. Government working on curbing inflation. Rate cuts.
FDI to India as of March 2008 is 4443 Million US$.
Dollar to Rupee rate fell sharply.

On the other hand China has recorded similar growth. We wonder if there anything which is not made in China.

So, two big countries, from Asia growing rapidly is a potential economic threat to the already falling dollar.

How to put a brake on the fast growing countries like India and China?
How to make sure that the dollar price continues to stay stable?

On the other hand the news from India

“A famous Indian Cricketer currently active is paid around 1 Crore for an endorsement for petrol”

Does Indian petrol companies ever need to have a marketing division and pour millions into advertising?

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