Tuesday, 24 April 2012

Oil Prices

Oil Prices will continue to rise - with fluctuations - as long as China continues its economic growth. Once the China growth phase slows oil prices will be spurred on by economic development in India.

Oil prices are directly related to economic development. First economic development boosts industrialization. Subsequently industrial production fosters employment and improved living standards for populations - whose improved affluence increases consumer demand for a multitude of products. Thus developing economies are transformed through the industrialzation process largely fueled by Oil and Oil Prices. Oil prices thereafter increase as a result of increasing consumer demand economy wide.