Shaikh Latif ECO

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Prepared by Shaikh M.Latif Student of IMS Lahore. Cell: +923324321300

WWOORRLLDD OOIILL PPRRIICCEESS AANNDD DDOOMMEESSTTIICC IINNFFLLAATTIIOONN..
http://www.google.com.pk/imgres?q=OIL+PRICES+&+INFLATION&hl=en&biw=1024&bih=625&gbv=2&tbm=isch&tbnid=hJI1jS4w3BZCOM:&imgrefurl=http://www.theoildrum.com/story/2006/12/6/13419/4422&docid=qx0lF9MdyemV_M&imgurl=http://europe.theoildrum.com/uploads/465/cv_impact_of_oil_on_inflation.png&w=508&h=273&ei=nc6xT-yKK5DFmQXV7LXACQ&zoom=1&iact=hc&vpx=300&vpy=276&dur=3797&hovh=164&hovw=306&tx=204&ty=97&sig=116113227034746585951&page=1&tbnh=109&tbnw=202&start=0&ndsp=8&ved=1t:429,r:1,s:0,i:77http://www.google.com.pk/imgres?q=OIL+PRICES+&+INFLATION&hl=en&biw=1024&bih=625&gbv=2&tbm=isch&tbnid=hJI1jS4w3BZCOM:&imgrefurl=http://www.theoildrum.com/story/2006/12/6/13419/4422&docid=qx0lF9MdyemV_M&imgurl=http://europe.theoildrum.com/uploads/465/cv_impact_of_oil_on_inflation.png&w=508&h=273&ei=nc6xT-yKK5DFmQXV7LXACQ&zoom=1&iact=hc&vpx=300&vpy=276&dur=3797&hovh=164&hovw=306&tx=204&ty=97&sig=116113227034746585951&page=1&tbnh=109&tbnw=202&start=0&ndsp=8&ved=1t:429,r:1,s:0,i:77


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Special Assignment:

SUBJECT: BUSINESS ECONOMICS

Submitted To:

Respected Sir. Shafiq-ur-Rehman

Submitted By:

Muhammad Latif

ID: 091129

MBA (HRM)

( May 15, 2012 )


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D E D I C A T I O N

THIS REPORT IS DEDICATED TO MY GREAT PARENTS

AND

I like to dedicate this report to all business

students who want to become great business

professionals and want to be on the height ofthe Business World . I hope that they would

be satisfied from my task and that would help

them in their future life.


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ALLAH


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Authorization Message

On March 05, 2012 Respected Sir Mr. Shafiq-ur-

Rehman, who is the senior lecturer of Business

Economics course asked me to submit report on

WWOORRLLDD OOIILL PPRRIICCEESS AANNDD DDOOMMEESSTTIICC IINNFFLLAATTIIOONN..


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Transmittal Letter

May 15, 2012

Mr. Shafiq-ur-Rehman

Senior Lecturer at Institute of Management Science

23- E-3, Gulberg III, Lahore.

Subject: WORLD OIL PRICES AND DOMESTIC INFLATION.

Respected Sir. Shafiq ur Rehman:

I have an honour to present you the report on World Oil Prices & Domestic Inflation in

Business Economics course requirement in accordance with your instructions.

I started the report on 11th March 2012 and finished it on 12th May 2012. This was made

with my individual efforts as well as help of some faculty members of University ofSargodha .The content of this report concentrates how the inflation increases , major oil

producing countries and relationship between oil prices and inflation furthermore what is

the impact of increase in oil prices in our country. This report also discusses the future

perspective, current and past oil prices and inflation rate. I have also added in this report

a comparative study of oil prices and inflation. At the end I have put my conclusion and

recommendation in this report.

If you have any question concerning with my observation or report as well please feel

free to contact M.Latif at 0332-4321300 or [email protected]

Sincerely,

Shaikh Muhammad Latif


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TABLE OF CONTENT

PINTRODUCTION TO OIL PRODUCING COUNTRIES1

TOP 10 OIL PRODUCING COUNTRIES...5

RELATIONSHIP OF OIL PRICES AND INFLATION...7

IMPORTS OF OIL BY PAKISTAN......10

IMPACT OF INFLATION ON INDIVIDUALS LIVES...11

HISTORICAL OIL PRICES...12

INFLATION IN PAKISTAN DUE TO OIL PRICES............15

FUTURE PERSPECTIVE OF OIL PRICES AND INFLATION...19

CONCLUSION AND RECOMMENDATIONS.........2

BIBLEOGRAPHY....21


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This is a list of countries by oil productionmostly based on CIA World Factbook data.

Note that oil productionrefers to the sum of barrels of crude oil extracted each day from drilling

operations compounded with the equivalent production of natural gas liquids and refinery gainsfrom domestic or imported petroleum production. This should not be confused with oil supply,which often refers to market availability of multiple types of petroleum and non-petroleum fuels(such as natural gas and bio-ethanol), as well as refinery gains and extraction from man-madereserves of different petroleum products (such as the US strategic reserves).

Chart of oil producing nations ordered by gross production
http://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/CIAhttp://en.wikipedia.org/wiki/The_World_Factbookhttp://en.wikipedia.org/wiki/Barrels_of_oil#Oil_barrelhttp://en.wikipedia.org/wiki/Natural_gas_liquidshttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Bio-ethanolhttp://en.wikipedia.org/wiki/Strategic_Petroleum_Reserve_%28United_States%29http://en.wikipedia.org/wiki/File:Crude_NGPL_IEAtotal_1960-2008.svghttp://en.wikipedia.org/wiki/Strategic_Petroleum_Reserve_%28United_States%29http://en.wikipedia.org/wiki/Bio-ethanolhttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Natural_gas_liquidshttp://en.wikipedia.org/wiki/Barrels_of_oil#Oil_barrelhttp://en.wikipedia.org/wiki/The_World_Factbookhttp://en.wikipedia.org/wiki/CIAhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Petroleum


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Countries producing oil 2010, bbl/day

Country Production (bbl/day)Share ofWorld % Date ofInformation

World 87,500,000 100% 2011

Arab League 24,171,503 29.71% 2009

1 Russia 10,540,000 12.01% 2011

2 Saudi Arabia 8,800,000 10.06% 2011

3 United States 7,800,000 8.91% 2011

4 Iran 4,172,000 4.77% 2009

5 China 3,991,000 4.56% 2009

6 Canada 3,289,000 3.90% 2009

7 Mexico 3,001,000 3.56% 20098 United Arab Emirates 2,798,000 3.32% 2009

9 Brazil 2,572,000 3.05% 2009

10 Kuwait 2,494,000 2.96% 2009

11 Venezuela 2,472,000 2.93% 2009

12 Iraq 2,399,000 2.85% 2009

European Union 2,365,000 2.81% 2009

13 Norway 2,350,000 2.79% 2009

14 Nigeria 2,211,000 2.62% 2009

15 Algeria 2,125,000 2.52% 2009 California 1,959,271 2.33% 2011

16 Angola 1,948,000 2.31% 2009

17 Libya 1,790,000 2.12% 2009

18 Kazakhstan 1,540,000 1.83% 2009

19 United Kingdom 1,502,000 1.78% 2009

20 Qatar 1,213,000 1.44% 2009

21 Indonesia 1,023,000 1.21% 2009

22 Azerbaijan 1,011,000 1.20% 2009

23 Colombia 903,000 0.97% 2011

24 India 878,700 1.04% 2009

25 Oman 816,000 0.95% 2009

26 Argentina 796,300 0.93% 2009

27 Malaysia 693,700 0.82% 2009

28 Egypt 680,500 0.81% 2009

29 Australia 589,200 0.70% 2009

30 Ecuador 485,700 0.58% 2009
http://en.wikipedia.org/wiki/Barrel_%28unit%29http://en.wikipedia.org/wiki/Arab_Leaguehttp://en.wikipedia.org/wiki/Arab_Leaguehttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Saudi_Arabiahttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/United_Arab_Emirateshttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Kuwaithttp://en.wikipedia.org/wiki/Venezuelahttp://en.wikipedia.org/wiki/Iraqhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Nigeriahttp://en.wikipedia.org/wiki/Algeriahttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Angolahttp://en.wikipedia.org/wiki/Libyahttp://en.wikipedia.org/wiki/Kazakhstanhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Qatarhttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Azerbaijanhttp://en.wikipedia.org/wiki/Colombiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Omanhttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Malaysiahttp://en.wikipedia.org/wiki/Egypthttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Ecuadorhttp://en.wikipedia.org/wiki/Ecuadorhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Egypthttp://en.wikipedia.org/wiki/Malaysiahttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Omanhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Colombiahttp://en.wikipedia.org/wiki/Azerbaijanhttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Qatarhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Kazakhstanhttp://en.wikipedia.org/wiki/Libyahttp://en.wikipedia.org/wiki/Angolahttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Algeriahttp://en.wikipedia.org/wiki/Nigeriahttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Iraqhttp://en.wikipedia.org/wiki/Venezuelahttp://en.wikipedia.org/wiki/Kuwaithttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/United_Arab_Emirateshttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Saudi_Arabiahttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Arab_Leaguehttp://en.wikipedia.org/wiki/Barrel_%28unit%29


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CountryProduction (bbl/day)

Share ofWorld %

Date ofInformation

31 Syria 400,400 0.48% 2009

32 Thailand 380,000 0.45% 2010

33 South Sudan 375,000 0.45% 2010

34 Equatorial Guinea 346,000 0.41% 2009

35 Vietnam 300,600 0.36% 2010

36 Yemen 288,400 0.34% 2009

37 Taiwan 276,800 0.33% 2009

38 Congo, Republic of the 274,400 0.33% 2009

39 Denmark 262,100 0.31% 2009

40 Gabon 241,700 0.29% 2009

41 Turkmenistan 197,700 0.23% 2009

42 South Africa 191,000 0.23% 2009

43 Germany 156,800 0.19% 2009

44 Trinidad and Tobago 151,600 0.18% 2009

45 Peru 148,000 0.18% 2009

46 Italy 146,500 0.17% 2009

47 Brunei 146,000 0.17% 2009

48 Japan 132,700 0.16% 2009

49 Romania 117,000 0.14% 2009

50 Chad 115,000 0.14% 2009

51 Sudan 111,700 0.14% 2009

52 Ukraine 99,930 0.12% 200953 Timor-Leste 96,270 0.11% 2009

54 Tunisia 91,380 0.11% 2009

55 Cameroon 77,310 0.09% 2009

56 Uzbekistan 70,910 0.08% 2009

57 France 70,820 0.08% 2009

58 New Zealand 61,150 0.07% 2009

59 Pakistan 59,140 0.07% 2009

60 Cote d'Ivoire 58,950 0.07% 2009

61 Netherlands 57,190 0.07% 2009

62 Turkey 52,980 0.06% 2009

63 Bahrain 48,560 0.06% 2009

64 Cuba 48,340 0.06% 2009

65 Korea, South 48,180 0.06% 2010

66 Bolivia 47,050 0.06% 2010

67 Papua New Guinea 35,090 0.04% 2009
http://en.wikipedia.org/wiki/Barrel_%28unit%29http://en.wikipedia.org/wiki/Syriahttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/South_Sudanhttp://en.wikipedia.org/wiki/Equatorial_Guineahttp://en.wikipedia.org/wiki/Vietnamhttp://en.wikipedia.org/wiki/Yemenhttp://en.wikipedia.org/wiki/Taiwanhttp://en.wikipedia.org/wiki/Republic_of_the_Congohttp://en.wikipedia.org/wiki/Denmarkhttp://en.wikipedia.org/wiki/Gabonhttp://en.wikipedia.org/wiki/Turkmenistanhttp://en.wikipedia.org/wiki/South_Africahttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Trinidad_and_Tobagohttp://en.wikipedia.org/wiki/Peruhttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Bruneihttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Romaniahttp://en.wikipedia.org/wiki/Chadhttp://en.wikipedia.org/wiki/Sudanhttp://en.wikipedia.org/wiki/Ukrainehttp://en.wikipedia.org/wiki/East_Timorhttp://en.wikipedia.org/wiki/Tunisiahttp://en.wikipedia.org/wiki/Cameroonhttp://en.wikipedia.org/wiki/Uzbekistanhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/C%C3%B4te_d%27Ivoirehttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Bahrainhttp://en.wikipedia.org/wiki/Cubahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Boliviahttp://en.wikipedia.org/wiki/Papua_New_Guineahttp://en.wikipedia.org/wiki/Papua_New_Guineahttp://en.wikipedia.org/wiki/Boliviahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Cubahttp://en.wikipedia.org/wiki/Bahrainhttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/C%C3%B4te_d%27Ivoirehttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Uzbekistanhttp://en.wikipedia.org/wiki/Cameroonhttp://en.wikipedia.org/wiki/Tunisiahttp://en.wikipedia.org/wiki/East_Timorhttp://en.wikipedia.org/wiki/Ukrainehttp://en.wikipedia.org/wiki/Sudanhttp://en.wikipedia.org/wiki/Chadhttp://en.wikipedia.org/wiki/Romaniahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Bruneihttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Peruhttp://en.wikipedia.org/wiki/Trinidad_and_Tobagohttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/South_Africahttp://en.wikipedia.org/wiki/Turkmenistanhttp://en.wikipedia.org/wiki/Gabonhttp://en.wikipedia.org/wiki/Denmarkhttp://en.wikipedia.org/wiki/Republic_of_the_Congohttp://en.wikipedia.org/wiki/Taiwanhttp://en.wikipedia.org/wiki/Yemenhttp://en.wikipedia.org/wiki/Vietnamhttp://en.wikipedia.org/wiki/Equatorial_Guineahttp://en.wikipedia.org/wiki/South_Sudanhttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Syriahttp://en.wikipedia.org/wiki/Barrel_%28unit%29


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CountryProduction (bbl/day)

Share ofWorld %

Date ofInformation

68 Poland 34,140 0.04% 2009

69 Belarus 31,400 0.04% 2009

70 Spain 27,230 0.03% 2009

71 Croatia 23,960 0.03% 2009

72 Austria 21,880 0.03% 2009

73 Hungary 21,430 0.03% 2010

74 Burma 18,880 0.02% 2009

75 U.S. Virgin Islands 16,870 0.02% 2009

76 Mauritania 16,510 0.02% 2009

77 Congo, Democratic Republic of the 16,360 0.02% 2009

78 Suriname 15,190 0.02% 2009

79 Guatemala 13,530 0.02% 2009

80 Serbia 11,400 0.01% 201081 Belgium 11,220 0.01% 2009

82 Czech Republic 10,970 0.01% 2009

83 Singapore 10,910 0.01% 2009

84 Chile 10,850 0.01% 2009

85 Philippines 9,671 0.01% 2010

86 Finland 8,718 0.01% 2009

87 Estonia 7,600 0.01% 2009

88 Ghana 7,081 0.01% 2009

89 Greece 6,779 0.01% 200990 Lithuania 6,333 0.01% 2009

91 Bangladesh 5,733 0.01% 2009

92 Albania 5,400 0.01% 2009

93 Mongolia 5,100 0.01% 2009

94 Sweden 4,833 0.01% 2009

95 Portugal 4,721 0.01% 2009

96 Slovakia 4,114 0.00% 2009

97 Morocco 4,053 0.00% 2009

98 Belize 3,990 0.00% 2009

99 Israel 3,806 0.00% 2009

100 Switzerland 3,488 0.00% 2009

101 Bulgaria 3,227 0.00% 2009

102 Aruba 2,235 0.00% 2009

103 Puerto Rico 1,783 0.00% 2009

104 Uruguay 997 0.00% 2010
http://en.wikipedia.org/wiki/Barrel_%28unit%29http://en.wikipedia.org/wiki/Polandhttp://en.wikipedia.org/wiki/Belarushttp://en.wikipedia.org/wiki/Spainhttp://en.wikipedia.org/wiki/Croatiahttp://en.wikipedia.org/wiki/Austriahttp://en.wikipedia.org/wiki/Hungaryhttp://en.wikipedia.org/wiki/Burmahttp://en.wikipedia.org/wiki/United_States_Virgin_Islandshttp://en.wikipedia.org/wiki/Mauritaniahttp://en.wikipedia.org/wiki/Democratic_Republic_of_the_Congohttp://en.wikipedia.org/wiki/Surinamehttp://en.wikipedia.org/wiki/Guatemalahttp://en.wikipedia.org/wiki/Serbiahttp://en.wikipedia.org/wiki/Belgiumhttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Chilehttp://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Finlandhttp://en.wikipedia.org/wiki/Estoniahttp://en.wikipedia.org/wiki/Ghanahttp://en.wikipedia.org/wiki/Greecehttp://en.wikipedia.org/wiki/Lithuaniahttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Albaniahttp://en.wikipedia.org/wiki/Mongoliahttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Portugalhttp://en.wikipedia.org/wiki/Slovakiahttp://en.wikipedia.org/wiki/Moroccohttp://en.wikipedia.org/wiki/Belizehttp://en.wikipedia.org/wiki/Israelhttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Bulgariahttp://en.wikipedia.org/wiki/Arubahttp://en.wikipedia.org/wiki/Puerto_Ricohttp://en.wikipedia.org/wiki/Uruguayhttp://en.wikipedia.org/wiki/Uruguayhttp://en.wikipedia.org/wiki/Puerto_Ricohttp://en.wikipedia.org/wiki/Arubahttp://en.wikipedia.org/wiki/Bulgariahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Israelhttp://en.wikipedia.org/wiki/Belizehttp://en.wikipedia.org/wiki/Moroccohttp://en.wikipedia.org/wiki/Slovakiahttp://en.wikipedia.org/wiki/Portugalhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Mongoliahttp://en.wikipedia.org/wiki/Albaniahttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Lithuaniahttp://en.wikipedia.org/wiki/Greecehttp://en.wikipedia.org/wiki/Ghanahttp://en.wikipedia.org/wiki/Estoniahttp://en.wikipedia.org/wiki/Finlandhttp://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Chilehttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Belgiumhttp://en.wikipedia.org/wiki/Serbiahttp://en.wikipedia.org/wiki/Guatemalahttp://en.wikipedia.org/wiki/Surinamehttp://en.wikipedia.org/wiki/Democratic_Republic_of_the_Congohttp://en.wikipedia.org/wiki/Mauritaniahttp://en.wikipedia.org/wiki/United_States_Virgin_Islandshttp://en.wikipedia.org/wiki/Burmahttp://en.wikipedia.org/wiki/Hungaryhttp://en.wikipedia.org/wiki/Austriahttp://en.wikipedia.org/wiki/Croatiahttp://en.wikipedia.org/wiki/Spainhttp://en.wikipedia.org/wiki/Belarushttp://en.wikipedia.org/wiki/Polandhttp://en.wikipedia.org/wiki/Barrel_%28unit%29


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Total world production of the oil is 12 percent and the oil of the world will exhaust in a smallnumber of years. Every country is endeavoring to explore more stocks of oil. It is the necessityof this age that we should curtail the requirement of oil. Nevertheless, we should attempt to take

full advantage of the oil production. Here is the list of top ten oil producing countries andwe converse about their manufacturing, import and export of the oil.

1. Russia

The solitary biggest oil manufacturing country in the world is Russia, having a

production of 10,124,000 barrels per day. It shares 12 percent oil of the world. It

has about 60 billion barrels of proved oil reserves or five percent of the worlds oil

reserves.

2. Saudi Arabia

Saudi Arabia is the second biggest oil manufacturers, but produces oil

less than Russia. The production of Saudi Arabia is 10,121 million barrels

oil per day. It has one-fifth of the worlds established oil stocks. It is the

biggest exporter of oil in the world.

3. United States

It is the third biggest oil manufacturing country producing large amounts of oil in the

world. It produces 9.6 million barrel of oil per day. It shares about 11 percent oil of theworld. It owns 21 billion barrels as confirmed reserves of oil.

4. China

It manufactures almost 4.27 million barrels of oil per day. It supplies five percentof oil to the world. It has about 20.3 billion barrels of proved oil reserves. It is thefifth largest provider of oil to the US. Iran supplies 11 percent of china oil imports.
http://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/united-states-america-flag-round-3dhttp://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/china-flag-round-3dhttp://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/united-states-america-flag-round-3dhttp://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/china-flag-round-3dhttp://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/united-states-america-flag-round-3dhttp://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/china-flag-round-3dhttp://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/united-states-america-flag-round-3dhttp://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/china-flag-round-3d


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5. Iran

Iran has a main function in the world oil market because its quality is exquisite. It

produces about 4,172,000 bbl and 4.25 million barrels of oil per day. It exports4.95 percent oil to the world.

6. Canada

It is the main manufacturing in the financial system of North America. Its

productions are 3,289,000 barrels per day. It provides about 3.90 percent oil to

the world. It is the solitary biggest source of oil imports in the United States.

7. Mexico

It exports oil to three leading foreign countries, to the United States, along withCanada and Saudi Arabia. Its production is 3,001,000 barrel oil of the world. Itsupplies about 3.56 percent oil to the world.

8. United Arab Emirates

It produces about 2,798,000 barrels oil of the world and provides 3.32 percentoil to the world. Their oil stocks classify them at the sixth biggest country in theworld and maintaining the most flourished system of wealth creation in westPakistan.

9. Brazil

It manufactures 2,572,000 barrels oil of the world and it supplies about 3.05percent oil to the world. It contains 8.5 billion of confirmed oil storages. Tupi oilfield is a famous oil field in Brazil.

10. Kuwait

The production of oil of Kuwait is 2,494,000 which is less than Brazil. Itexports 2.96 percent oil to the world. It has 104 billion barrel confirmed oilstocks. Kuwaits oil extra quantities are the fourth biggest in the world. In

export, it is on seventh number.
http://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/brazilian-flaghttp://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/united-arab-emirates-flaghttp://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/brazilian-flaghttp://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/united-arab-emirates-flaghttp://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/brazilian-flaghttp://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/united-arab-emirates-flaghttp://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/brazilian-flaghttp://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/united-arab-emirates-flaghttp://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/brazilian-flaghttp://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/united-arab-emirates-flaghttp://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/brazilian-flaghttp://dtopten.com/top-ten-list-of-oil-producing-countries-in-the-world.html/united-arab-emirates-flag


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How strong is the relationship between changes in crude oil prices and inflation? In theory thecausal relationship is fairly clear. An increase in oil prices such as that seen in the second halfof 2000 causes an inward shift in short run aggregate supply and puts upward pressure on the

price level in other words a sharp jump in the price of crude oil causes an exogenousinflationary shock and the impact will be greatest when a country is (a) a large-scale importer ofoil and (b) has many industries that use oil as an essential input in the production process.

Research suggests that a $3-4 rise in oil prices can be expected to add directly about 0.1% toUK consumer price inflation after about two years. This is not in itself a major contributor tohigher prices.

Of greater impact are the knock-on effects of increased costs through the supply-chain. Thesecond-round effects on inflation are more complicated, as businesses pass through highercosts. Analysis from economists at the Bank of England has estimated that a $1 rise in oil addsa further 0.1% to inflation after two years (including the petrol effect). A doubling in oil prices

would have many other inflationary effects: increasing the cost of heating oil and aviation fuel,plastics, chemicals, as well as raising the material costs of all firms (which would likely bepassed onto consumers).

But other factors might help to limit the inflationary impact of this exogenous shock. Considerthe impact of higher oil prices on aggregate demand. Firstly, an increase in inflation acts toreduce the growth of real incomes putting downward pressure on consumer demand (the maincomponent of AD). Higher inputs costs will also squeeze company profit margins which togetherwith a slower growth of demand will lead to cutbacks in planned investment spending.

The monetary policy authorities might respond to rising oil prices by increasing short-terminterest rates which acts to dampen down spending. A rise in interest rates is by no means

automatic, because the Bank of England for example takes a full range of inflation indicatorsinto account when setting interest rates. But if policy is tightened, we would expect to see slowereconomic growth, a possible rise in unemployment and a diminution in the ability of workers toask for pay increases that keep pace with inflation. Deflationary policies designed to controlcost-push inflation will have the effect of reducing real national output below potential (creating anegative output gap). Indeed if a slowdown becomes a recession, then the demand for oil willdecline putting downward pressure on international oil prices.

How do rising oil prices affect the inflation Rate.

Rising oil prices tend to affect the overall consumer price index (CPI) directly by raising

its energy cost component, which includes the prices of energy-related items, such ashousehold fuels, motor fuels, gas, and electricity. Among these, gasoline and fuel oil aredirectly derived from crude oil, so their prices follow oil prices very closely. An increasein the price of oil may also affect energy costs through the prices of other items that areclose substitutes; for example, households and businesses may switch from oil-relatedenergy items to natural gas, thus leading to an increase in its price. The extent to whichrising oil prices translate into higher overall inflation through higher energy costs


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depends on their persistence. If they continue to rise, they may lead to sustainedincreases in the overall price level, that is, to an increase in the overall inflation rate.

Rising oil prices tend also to affect the core portion of the CPI indirectly, becauseenergy prices represent a considerable portion of the production cost for many of the

items in it, such as transportation services. In addition, if workers have to pay higherenergy prices themselves, they may bargain for compensating wage increases, whichalso increases the production costs of items in the core CPI. The extent to which risingoil prices translate into higher core inflation through higher production costs depends,among other things, on how much they break into the overall inflation expectations ofthose who set prices and wages. In fact, if rising oil prices lead to higher inflationexpectations over the longer term, rising energy and wage costs are more likely to bepassed through in terms of rising consumer prices. In this case, rising oil prices maylead to sustained increases in the core portion of the CPI, that is, to an increase in coreinflation.

However, once oil prices stabilize, as they have in recent months, the correspondinginflationary pressures will dissipate. As a result, both overall and core measures ofinflation may decline, with the overall inflation rate likely to fall towards the lower rate ofcore inflation.

Assessing the effects of oil price increases on inflation

One way to examine the impact of rising oil prices on core inflation is to estimate aPhillips curve model. According to this widely used statistical relationship, currentinflation depends on lagged inflation, on the lagged unemployment gap, and on alagged measure of output supply shocks. Lagged inflation captures the degree of

inflation persistence. The unemployment gap, defined as the deviation of theunemployment rate from its baseline value, measures inflationary pressures emanatingfrom the labor market. The measure of output supply shocks captures inflationarypressures emanating from factors, such as oil price increases. Hooker (2002) estimatedsuch a model for the U.S. with core inflation as the dependent variable using data from1962 to 2000 and found that, while oil price increases had a substantial impact on coreinflation until 1981, they had little impact thereafter.

To examine the impact of recent oil price increases on core inflation for the U.S., theeuro area, Canada, and the U.K., I use two simple variants of the Phillips curve modelspecified by Hooker. Core inflation, the dependent variable, is defined as the percentchange in core CPI over the past 12 months. Two explanatory variables are lags of coreinflation and of the unemployment gap. Because some of these data series for the foureconomies are available only from the second half of the 1990s, the estimation sampleis shorter than Hooker's and covers the period from January 1997 through May 2008.(The documentation for the estimations reported here is available upon request.

The first variant includes as an explanatory variable lagged local-currency oil-priceinflation, which is measured by the change in the local-currency price of West Texas


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intermediate (WTI) crude oilthis captures inflationary pressures arising from oil priceincreases. For the U.S, this variable is simply the change in the price of oil, given thatthe price of oil is denominated in dollars in global oil markets; for the other threeeconomies, it is the difference between changes in the dollar price of oil and in theexchange rate of the local currency relative to the dollar. One implication of this is that

exchange rate changes affect inflationary pressures arising from oil price increases. Forexample, with the euro, the Canadian dollar, and the British pound all appreciatingrelative to the dollar over much of the last few months, the increases in thecorresponding exchange rates have dampened the increases in the local-currencyprices of oil originating from the rise in the dollar price of oil. The second variantincludes the lag of noncore inflation, which is computed as the difference betweenchanges in overall CPI and core CPI. This variable represents an alternative measure ofinflationary pressures emanating from both food and energy prices.

Why have recent oil price increases, as measured by noncore inflation, had a significant impacton core inflation in the euro area and not in the other three economies? One potentialexplanation may have to do with the lower degree of competition in European labor andconsumer-goods markets. For example, workers' unions represent a larger share of the laborforce in the euro area, so they typically command more influence in bargaining wages withemployers. As a result, in response to higher energy prices, workers are more likely to obtainlarger wage increases, inducing, in turn, higher costs for businesses. As for consumer-goodsmarkets, businesses in the euro area face a lower degree of competition, so they enjoy strongerprice-setting power. Therefore, they may have fewer hesitations to pass on increases inproduction costs to consumer prices, leading to a more significant impact on core inflation.


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http://www.google.com.pk/imgres?q=OIL+PRICES+&+INFLATION&hl=en&biw=1024&bih=625&gbv=2&tbm=isch&tbnid=ym4pRQMyRgGnGM:&imgrefurl=http://www.consolsoils.co.uk/blog/?p=880&docid=A5DCZKDXHQ99LM&imgurl=http://www.consolsoils.co.uk/blog/wp-uploads/oil_prices_lead_to_inflation_and_re.gif&w=480&h=500&ei=nc6xT-yKK5DFmQXV7LXACQ&zoom=1&iact=hc&vpx=93&vpy=236&dur=50640&hovh=229&hovw=220&tx=120&ty=111&sig=116113227034746585951&page=3&tbnh=135&tbnw=130&start=26&ndsp=19&ved=1t:429,r:14,s:26,i:167


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Total fuel oil imports, used for power generation, climbed 70,328 tons to 460,688 tons, up

around 18 per cent, figures from the Oil Companies Advisory Committee.

Pakistan bought more than 450,000 tons of fuel oil in March, its highest level this year.

Total fuel oil imports, used for power generation, climbed 70,328 tons to 460,688 tons,up around 18 per cent, figures from the Oil Companies Advisory Committee showed.

The rise was in line with expectations, as Pakistan imported only about 390,000 tons last month,out of the term volume of 890,000 tons state-owned company Pakistan State Oil (PSO)purchased for delivery between February and March.

The country is looking to increase its hydropower capacity through a recently approved $1billion World Bank loan in an effort to reduce its reliance on fuel oil imports.

The bank said $840 million of the loan will be used to boost capacity at the Tarbela hydro powerproject, northwest of Islamabad, by 1,410 megawatts.

With the June imports, Pakistans monthly average volume for the year stands at about 606,000

tons, the highest on record and up about 10 per cent from last years monthly average.

Import volumes are expected to stay high at least until October, following PSOs purchase of theAugust-October volumes via tender.

The tender, for 20 HSFO cargoes of 65,000 tons each and six LSFO lots of 60,000 tons eachfor August to October delivery on a cost-and-freight (C&F) Karachi basis, at steady to higherpremiums compared to its last deal.


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The requirement, which averages 550,000 tons for each of the three months, come on the backof similarly heavy purchases for June-October delivery, totaling 1.62 million tons, or about340,000 tons per month.

Most of Pakistans supplies come from the Middle East, due to freight advantages because ofthe proximity to the country, versus East Pakistani players.

The presence of the international players was boosted by Pakistans increased requirement forfuel oil of less than one per cent, particularly since 2009, when it had to reactivate older powerplants to meet increasing demand for electricity.

Impact of Inflation on Lives of Individuals

Inflation usually hurts your buying power. That's because rising prices means you have to pay

more for the same goods and services. Inflation can help you if you are the lucky recipient of

income inflation. You can also benefit from asset inflation, such as in housing or stocks, if you

own that asset before the oil price rises. However, if your income increases at a slower rate thangeneral inflation, your buying power declines even if you are making more. Furthermore, many

people can get hurt by an asset bubble if they try to time it, and buy right when the bubble is

about to burst. In general, inflation's main consequence is a subtle reduction in your standard of

living.

Inflation doesn't affect everything equally. Gas prices can double while your home loses value.This is exactly what happened during the financial crisis. There was deflation in home prices.Meanwhile, inflation in oil prices, which reached an all-time high per barrel. Since oil prices drivegas prices. Driving to work became even more expensive, and stressful, at a time when manyworkers were worried about even keeping their job.

Once the Federal Reserve started quantitative easing and the Federal government enacted theeconomic stimulus plan to end the recession, investors grew worried about inflation. As a result,they bought gold. This eventually drove the price of gold to an all-time record. There is inflationin gold and oil prices, with deflation in housing prices and personal income.

Inflation has another bad side-effect...once people start to expect inflation, they will spend nowrather than later. That's because they know things will only cost more later. This consumerspending heats up the economy even more, leading to more and more inflation. This situation isknown as spiraling inflation because it spirals out of control.

If inflation reaches the double-digits, it's known as hyperinflation. If this happens, you will need a

wheelbarrow to buy a loaf of bread. Fortunately, it happens very rarely, and only when thegovernment is so irresponsible that it prints money without regard to the inflation rate. Ithappened in Germany in the 1920s and in Zimbabwe in the 2000s. If inflation ever approachesthe double-digits, your best defense is to buy gold or any currency that isn't pegged to thedollar.
http://useconomy.about.com/od/glossary/g/asset_bubble.htmhttp://useconomy.about.com/od/commoditiesmarketfaq/p/high_gas_prices.htmhttp://useconomy.about.com/od/pricing/f/Deflation.htmhttp://useconomy.about.com/od/economicindicators/p/Crude_Oil.htmhttp://useconomy.about.com/od/commoditiesmarketfaq/p/high_oil_prices.htmhttp://useconomy.about.com/od/governmentagencies/p/fed.htmhttp://useconomy.about.com/od/glossary/g/Quantitative-Easing.htmhttp://useconomy.about.com/od/candidatesandtheeconomy/a/Obama_Stimulus.htmhttp://useconomy.about.com/od/grossdomesticproduct/f/Recession.htmhttp://useconomy.about.com/od/commoditiesmarketfaq/tp/gold_prices.htmhttp://useconomy.about.com/od/inflationfaq/f/Hyperinflation.htmhttp://useconomy.about.com/od/inflationfaq/f/Hyperinflation.htmhttp://useconomy.about.com/od/commoditiesmarketfaq/tp/gold_prices.htmhttp://useconomy.about.com/od/grossdomesticproduct/f/Recession.htmhttp://useconomy.about.com/od/candidatesandtheeconomy/a/Obama_Stimulus.htmhttp://useconomy.about.com/od/glossary/g/Quantitative-Easing.htmhttp://useconomy.about.com/od/governmentagencies/p/fed.htmhttp://useconomy.about.com/od/commoditiesmarketfaq/p/high_oil_prices.htmhttp://useconomy.about.com/od/economicindicators/p/Crude_Oil.htmhttp://useconomy.about.com/od/pricing/f/Deflation.htmhttp://useconomy.about.com/od/commoditiesmarketfaq/p/high_gas_prices.htmhttp://useconomy.about.com/od/glossary/g/asset_bubble.htm


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Historical Crude Oil Prices (Table)

Updated January 19, 2012

The first table shows the Annual Average Crude Oil Price from 1946 to the present.

Prices are adjusted for Inflation to December 2012 prices using the Consumer PriceIndex (CPI-U) as presented by the Bureau of Labor Statistics.

Note: Since these are ANNUAL Averages they will not show the absolute peak priceand will differ slightly from the Monthly Averages in Oil Price Data in Chart Form.

Also note that although the monthly peak occurred in December 1979 the annual peakdidn't occur until 1980 since the average of all the monthly prices was higher in 1980.

Inflation adjusted prices reached an all-time low in 1998 (lower than the price in 1946)!And then just ten years later Oil prices were at the all time high for crude oil (above the

1979-1980 prices) in real inflation adjusted terms (although not quite on an annualbasis).

Prices are based on historical free market (stripper) prices of Illinois Crude as presentedby IOGA. Price controlled prices were lower during the 1970's but resulted in artificiallycreated gas lines and shortages and do not reflect the true free market price. Stripperprices were the actual free market prices of the time allowed for individual wells underspecial circumstances.

Annual Average Domestic Crude Oil Prices

1946-Present

U.S. Average

(in $/bbl.)

Year Nominal Inflation Adjusted

1946 $1.63 $18.55

1947 $2.16 $21.80

1948 $2.77 $26.01

1949 $2.77 $26.26

1950 $2.77 $25.99

1951 $2.77 $24.08

1952 $2.77 $23.55

1953 $2.92 $24.58


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1954 $2.99 $25.13

1955 $2.93 $24.65

1956 $2.94 $24.43

1957 $3.14 $25.21

1958 $3.00 $23.46

1959 $3.00 $23.23

1960 $2.91 $22.23

1961 $2.85 $21.52

1962 $2.85 $21.26

1963 $2.91 $21.46

1964 $3.00 $21.83

1965 $3.01 $21.55

1966 $3.10 $21.56

1967 $3.12 $21.11

1968 $3.18 $20.60

1969 $3.32 $20.43

1970 $3.39 $19.71

1971 $3.60 $20.07

1972 $3.60 $21.52

1973 $4.75 $23.95

1974 $9.35 $42.731975 $12.21 $51.17

1976 $13.10 $51.96

1977 $14.40 $53.59

1978 $14.95 $51.75

1979 $25.10 $77.31

1980 $37.42 $102.61

1981 $35.75 $88.85

1982 $31.83 $74.491983 $29.08 $65.91

1984 $28.75 $62.47

1985 $26.92 $56.47

1986 $14.44 $29.72

1987 $17.75 $35.25


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1988 $14.87 $28.42

1989 $18.33 $33.36

1990 $23.19 $39.94

1991 $20.20 $33.47

1992 $19.25 $30.96

1993 $16.75 $26.18

1994 $15.66 $23.84

1995 $16.75 $24.81

1996 $20.46 $29.42

1997 $18.64 $26.21

1998 $11.91 $16.50

1999 $16.56 $22.38

2000 $27.39 $35.88

2001 $23.00 $29.33

2002 $22.81 $28.59

2003 $27.69 $33.98

2004 $37.66 $44.96

2005 $50.04 $57.77

2006 $58.30 $65.25

2007 $64.20 $69.75

2008 $91.48 $95.572009 $53.48 $56.15

2010 $71.21 $73.69

2011 $87.04 $87.33


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Monthly Average Domestic Crude Oil Prices

2010-2011

U.S. Average

(in $/bbl.)

Month Nominal InflationAdjusted

Jan-10 $69.85 $72.50

Feb-10 $68.04 $70.60

Mar-10 $72.90 $75.34

Apr-10 $76.31 $78.72

May-10 $66.25 $68.29

Jun-10 $67.12 $69.26

Jul-10 $67.91 $70.06Aug-10 $68.34 $70.40

Sep-10 $67.18 $69.17

Oct-10 $73.63 $75.72

Nov-10 $76.00 $78.12

Dec-10 $81.01 $83.13

Jan-11 $84.47 $86.56

Feb-11 $81.32 $82.92

Mar-11 $94.72 $95.65

Apr-11 $102.15 $102.50

May-11 $92.92 $92.80

Jun-11 $87.92 $87.90

Jul-11 $88.82 $88.72

Aug-11 $77.72 $77.42

Sep-11 $77.31 $76.90

Oct-11 $78.00 $77.74

Nov-11 $88.78 $88.56

Dec-11 $90.30 $90.30


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Pakistans inflation jumped to 13.04 per cent in April over the same month last year, mainly due to

increase in prices of gas and petroleum products.

The inflation, measured through consumer price index (CPI), increased by 1.62 per cent in Aprilas compared to the previous month, indicating a rising trend in prices of oil. Inflation had fallenfrom 15pc in December last year to 14.2pc in January and 12.91pc in February because of agovernment freeze on oil and electricity prices. But since then a rising trend has been witnessedin inflation in the past couple of months owing to rising oil prices in domestic market.

Ironically, the Bureau issued the data regarding inflation at the end of the first week of everymonth for the past 30 years. But in an unprecedented move, the Bureau released the dataregarding inflation on the third day of a month, raising fear that the data might not be fullyreflective of actual inflation in the market.

The main contributor in the rising inflation in Pakistan is oil and food prices. The PakistanDevelopment Bank has predicted that the annual inflation in Pakistan may go up to 16pc by theend of June, mainly because of high global food and oil prices. But the multilateral donor in arecent report also warned in case developing countries, including Pakistan, did not takeappropriate measure to ease oil inflation, it could lead to pull more people below the povertyline.

The average inflation in 10 months of the current financial year also climbed to 14.08 pc overthe same period of last year.

The IMF has forecast Pakistans annual inflation at 13.5pc by the end of June.

The central banks move to keep its discount rate at 14pc in the past few months has partiallyhelped in easing the non-food and non-energy core inflation slightly to 9.4 pc in April from 9.5pcin March.

However, experts believe that discount rate is still on the higher side and the current monetarypolicy stance has failed to curb inflation on the one hand and stymied economic growth on theother.

The transportation index rose and fare of transportation by 9.80pc over the same month of lastyear. The rise in transportation fare was driven mainly by the increase of 12.89pc in the pricesof diesel, petrol 9.03pc, kerosene 11.32pc, CNG filling charges 1.28pc, vehicles 1.36pc and tireand tube 2.68pc.

But statistics showed that the inflation measured through the wholesale price index witnessedthe highest ever increase of 25.92 pc in April over last year, showing an upward trend in prices.

The trend reflects that the retail prices of manufactured goods will increase subsequently, whichwill drive up the overall consumer price inflation in the months ahead.


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Even food prices at manufacturing level witnessed an increase 19.39 per cent, reflecting thatfood prices of manufactured goods will also go up in the month ahead.

Rising oil prices present a new inflationary headache for Pakistan and further complicate thetask of policymakers grappling with broader price pressures, an uneven growth outlook andsurging dollar inflows.

Central bankers in Pakistan are reluctant to stifle growth by raising rates and are wary ofexacerbating yield differentials with western economies that would further attract potentiallydestabilizing resources flows.

At the same time, rising prices are politically fraught in country, which must decide betweentaking the fiscal hit of offsetting fuel price increases through subsidies or pass costs ontoinflation-wary consumers.

Inflation is also a big worry for global economic powerhouse China, whose leadership perceives

rising costs of living as a threat to social peace and stability.

While raising rates can do little to cap cost-driven or imported inflation, it can help cool overalldemand and contain inflationary expectations stoked by a broad rally in commodity markets.

It is difficult for individual country to deal with inflationary pressure coming from these externalcost factors.Global prices of oil and raw materials will stabilize if China raises interest rates and the impactof the hikes materializes in that economy.

High and rising: Oil prices have risen steadily this quarter. Benchmark US crude hit a 26-monthhigh near $92 per barrel and is forecast by some analysts to be headed to $100, driven by

quantitative easing in the United States and as robust growth in China and Pakistan drivedemand.

A weak dollar and OPECs evident reluctance to increase output add to the case for costlier oilin 2011.

We see broad price rises in soft commodities, hard commodities and black commodities (oiland coal), which have translated into imported inflation and imported cost increases.

Demand for oil products in Pakistan, rose rapidly , as millions more Pakistanis bought cars,bikes and industrial and petrochemical demand boomed, despite a two-year old fuel pricingsystem designed to ensure rising crude oil costs were passed on to consumers.

The rise in global crude prices comes on top of high food prices and surging growth inPakistans economy.Rising oil prices will not be the only problem for inflation. Higher food prices and wages, whichare seen across Pakistan, will also push up inflation from the demand side.

Inflation beyond by 16.50% during FY 2011 a survey report in Pakistan


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I want to share that inflation in Pakistan current year will be above 16.50% than think howmiddle class and low income people will survive. INFLATION in Pakistan due to badgovernance, oil prices and food prices. If not control than which way their ends no body knows?

Normally in Pakistan in private organization increment will be done by management wishes anddo not care what employees need or demand. A usually average of minimum salary raise isbetween 8 to 15% in a whole year. But some time management does not give revise in salaryand convey message our units or organization is running in LOSSES that is why we do notafford to give any one revise the pay scale.

When inflation is high and high un-employment? Who is responsible for this inflation in whichonly common and middle class suffer but those who are rich class never suffered or worried dueto surplus wealth of lasts but no one knows when and how he will die.

If our leaders honest and sincere than our country are full of resources, blessing, minerals,talented man powers, cultivate lands but we always looking for foreign aids especially to IMF(International Monetary Funds) or WB ( World Bank) or United States of America. Why notcontrol or reduce own state luxury expenses and think how our country will out from poverty,crisis etc.


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The rising price of oil poses a threat to CDs, savings accounts, and money market accounts.

Whether this threat is a temporary disruption or a long-term problem depends on whether oilprices continue their recent climb. A look into the future indicates that markets are not convincedthat this climb will continue.

According to the FDIC, money market rates nationally average just 0.22 percent. Sadly, that'sthe good news for depositors, as rates for short-term CDs and savings accounts are even lower.These low rates give depositors no buffer against inflation.

Oil can be an important influence on inflation. Not only is it a significant component of consumerprices in its own right, but through the use of petroleum in manufacturing and transportation, oilcan affect the prices of many other consumer goods.

As unrest in the Middle East has driven oil prices upwards, it has added to short-term inflationpressures. It remains to be seen whether oil is going to be a continuing inflation problem.

Is it possible to get a glimpse at what the future holds for oil prices? Not exactly, but it ispossible to get a glimpse of how the financial marketplace sees the price of oil playing out in theyears ahead.

Futures contracts for oil can be bought at a variety of target dates--anything from a few weeks toseveral years ahead. Normally, one would expect the prices on these contracts to progresssteadily higher as the target dates get further into the future, to account for the normal course ofinflation. Occasionally though, when short-term disruptions or speculation take hold, prices intothe future may be flat or even show a decline. This happened when oil peaked back in 2008, asnear-term speculation got well ahead of long-term price forecasts.

Currently, the chain of futures prices shows oil peaking later this year, then starting to decline.This is no guarantee of future developments, of course, but it is an indication that he marketsees oil prices as a short-term rather than long-term problem.
http://www.money-rates.com/savings.htmhttp://www.money-rates.com/mmarket.htmhttp://www.money-rates.com/mmarket.htmhttp://www.money-rates.com/savings.htm


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Oil prices are no longer as important in influencing the rate of inflation as they were ten ortwenty years previously. Our oil-energy dependency ratio has declined and the flexibility of ourlabor and product markets has increased which has the effect that pay is more flexible inresponse to changes in inflationary pressure (wages no longer automatically rise when inflationsurges) and many businesses have witnessed a decline in their ability to immediately pass onincreases in input costs when there are short term changes in raw material prices..

After my whole survey regarding my special assignment, I examined the impact of oil price

increases on core inflation. The estimation results lend support to the view that rising oil priceshave had some impact on core inflation in the euro area, while having a limited impact on coreinflation in the USA, Canada, and in the U.K while a strong impact on Pakistan. While theseresults are not decisive, they do lend some support to the notion that the strong emphasis thatmonetary policymakers in these economies have placed on maintaining their inflation-fightingcredibility has been working. Specifically, in the face of the recent oil price increases, theseresults suggest that their efforts have been quite successful in anchoring long-run inflationexpectations and securing a low-inflation environment.

Inflation is one of the obstacles on the way of development. In Pakistan, it has squeezed themajor part of the population. It needs to be controlled by strategic planning. Domestic productionshould be encouraged instead of imports; investment should be given preference in consumer

goods instead of luxuries, Agriculture sector should be given subsidies, foreign investmentshould be attracted, and developed countries should be requested for financial and managerialassistance. And lastly a strong monitoring system should be established on different levels inorder to have a sound evaluation of the process at every stage.


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BIBLEOGRAPHY

WEB LINKS:

http://knowledge.wharton.upenn.edu

http://economistsview.typepad.com

http://tutor2u.net

http://business-standard.com

http://inflationdata.com

http://business.time.com

http://www.ogra.org.pk/

http://voxeu.org4

http://www.psopk.com/

books.google.com.pk

www.questia.com

www.enotes.com

CONSULTATION:

Mr. Muhammad Rafique

(Senor Lecture of Economics at University of Sargodha)
http://www.ogra.org.pk/http://www.psopk.com/http://books.google.com.pk/books?id=Y-8zAAAAMAAJ&q=employee+promotion+criteria&dq=employhttp://www.questia.com/http://www.enotes.com/http://www.enotes.com/http://www.questia.com/http://books.google.com.pk/books?id=Y-8zAAAAMAAJ&q=employee+promotion+criteria&dq=employhttp://www.psopk.com/http://www.ogra.org.pk/


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Documents

Shaikh Latif ECO