SO WILL THIS OIL PRICES COME DOWN?

This is the question everyone asking. Will this Oil prices come down? Will we be able to live our life normally? And for that answer is YES, but when will it happen no body can predict this as Solution for lowering oil prices lies in the reason of higher oil prices. Let’s see how this reason helps us to lowering oil prices.

India, China, experiencing economy growth but it does not mean that current oil production is lagging in supplying oil. Infect Iran says that they have lots of oil and they have question where to store this oil? it means Their is no supply problem. Current oil production is sufficient to provide oil on time and with its full capacity.

So what is the problem in lowering Oil prices? It's Speculations in Commodity market. After the US economy crisis Investors in US started investing in Oil commodity to recover their loss from Equity market. And they started rumors of less supply, taking oil calls on higher rate and when purchase increased price of Oil also increased. but The Commodity Futures Trading Commission (CFTC) is investigating the activity commonly referred to as the "Enron Loophole" - under current law, US traders can execute transactions in look-alike contracts in crude oil contracts on the New York Mercantile Exchange (Nymex) and on London's Intercontinental Exchange (ICE), while the US regulators have oversight only on what goes on Nymex - traders are arbitraging between the two markets while the CFTC regulates only half of the trading. The London / Durbin legislation would give the CFTC the ability to exercise power over manipulation, speculation and record-keeping by US citizens and instruct US regulators to assess the foreign regulator's ability to apply comparable regulatory principles prior to granting relief from US regulatory requirements. Similarly, the Commodity Futures Trading Commission's action would condition access to US customers on the Intercontinental Exchange's adoption of position limits and accountability levels on the West Texas Intermediate contract. Now this CFTC's report is due by September. If this is just a speculation we can hope that oil prices will start coming down from September.

Even in November US has their General Elections due so we can hope that after this elections new government in Us will take some actions in taming this crisis. And we can hope it will help in strengthening Dollar again and it will help lowering Oil prices.

These General elections will help lowering speculations about Oil politics. As Bush will leave White house and with whom Venezuela president have a personal problem and the current government does not like Iran's stand on their Nuclear testing and this is not allowing OPEC countries to reach at one conclusion for taming oil prices. Now this General Election might help resolving these issues.

At the same moment countries like India are taking steps towards discovering new Oil fields. Cairn India has discovered new Oil field in Mangala Badmer, Rajasthan. So by India has two oil fields Bombay High and Mangala which will help India in fighting against this oil price rise.

Now with all this issues and the solution for lowering oil prices we can hope Oil prices will come down and we can live our lives back to normal. As this High oil prices has caused high Inflation. Now only thing we can keep is hope.