• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

New Delhi , June 27

SPECULATIVE investments in oil assets by investors, who were not traditionally present in the oil market, are responsible for the high ruling prices of oil, according to the Petroleum Minister, Mr Mani Shankar Aiyar.

"People who had investments in other assets are now investing heavily in oil stocks at the New York Mercantile Exchange (NYME), which has led to such ridiculously high prices," the Minister said on the sidelines of the National Development Council meeting here on Monday.

"As far as I can see, there is no justification for such ridiculously high prices. At some stage this bubble is going to burst," Mr Aiyar said, and added that, "There is no need to panic. We have enough foreign exchange reserves to buy oil if necessary."

He, however, said that the Government was worried about the implication of high crude prices on the consumers.

The Minister said that the recent change in regime in Iran would not have any impact on India's plan to import natural gas and development of oil fields in Iran. "We do not see the change in regime having negative impact. In fact, Iran may be the main outside source for oil for the long term," he added.

Mr Aiyar said India would engage with the new regime and talks were progressing as scheduled.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Monsoon reaches Delhi two days ahead of schedule

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line