We are in the middle of a tough time with soaring oil prices resulting in increase in food price and price of everything. Inflations close to all time high.
To worsen the situation. The oil price is controlled in many countries with very wrong vision. Since price is controlled, people dont bother about consuption without realising that goverment would subsidise their spending on oil with the tax they have paid which could be used for better purpose like health, education, infrastucture.
Infact, the oil subsidy in these countries is subsidising the oil producing countries.
If the price is allowed to be dictated by market conditions, people will reduce consumption, thus reducing its demand which will make the price come down. It is allready happening in US but it need to happen in big countries like India, China etc.
This level of oil price is not sustainable and price will come down to below $100 a barrel. When is the question!
All the businesses with depressed profit because of increased oil price will turn profitable then. Time to invest in these businesses is now.
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