As hundreds of millions of new drivers start driving in India and China, what will happen to the price of oil?

India + China = total 14% of the world oil consumption.





The U.S. = 25% of the world's oil consumption


+


having troops in major OPEC members Saudi Arabia, Kuwait, Iraq (these 3 having total 60% of world's oil reserves)








Go figure who is the real factor in oil price changeAs hundreds of millions of new drivers start driving in India and China, what will happen to the price of oil?
As Shaun correctly observes, politics and financial speculation are the key factors in determining the price of oil. However, if the ';peak oil'; theorists (alarmists?) are correct, the demands of rapidly developing economies, primarily China and India, could push us to the brink of an oil supply crisis sooner than previously anticipated. However, once the difference between supply and demand reaches a critical threshold, alternative sources, such as shale oil extraction, become economically viable. At that point also, the players change, and OPEC reserves represent a smaller portion of the total potential supply.





It's a complex analysis, with many variables, and there probably many valid answers, depending of course on the vagaries of war, the ';credit crisis';, changes in administration, and the unconsolidated consortium of lesser players who, collectively, exert substantial influence on both supply and demand. As hundreds of millions of new drivers start driving in India and China, what will happen to the price of oil?
Well, the oil price today is $62 a barrel as compared to $150 a barrel six months ago! Do you think the number of people driving cars in China and India or the rest of the world has decreased?? Oil prices don't depend on the consumption but has more to do with politics and finance.
The price of oil with an increase in demand will of course rise, as OPEC is a Oligopoly, they have a high % of market share, and therefore will be able to pump up the prices
Combine that with and OPEC cutting oil productions will equal even higher gas prices.
Don't know lazy