World Oil Consumption

When every nation is in the race towards economic prosperity, the usage of the hydro carbon is going to be increasing a day-by-day. The consumption in the industrial sector is galloping and the personal consumption in the automobile is also on the rise. It is estimated that 88 million barrels of the oil is consumed worldwide per day. The amount spent to buy they said amount of crude oil is estimated at USD3200 billion per year. It works out to be approximately USD 9 billion per day.

The recent rally in oil price to an extent of $ 70 per barrel in 75 trading days is found to be the highest increase compared to the rally that took place during the year 2001 –2002. The abnormal increases in the crude price had choked the economy of the world and the recession had set in. While there is a ray of hope in the revival of the economy, the increasing price of crude is again causing concern to the crude importing countries. There is a different school of thought that this rally in the oil price can help the economy to grow and the stock markets to show improvement. But the worry is that, the price should not again reach the level of inimical $ 150 per barrel.

The general view is that, the increase in the price of crude is an indication of the weakening dollar and fears of inflation. The IEA predicts that the oil consumption is bound to decrease by 206 million bpd in the days to come. It is high time that the world leaders ponder over the importance of alternative fuel, instead of depending on crude to a greater extent. If the trend of rising oil price is continued we may revisit the oil boom sand bust scenario shortly as witnessed during the year 2008.