The document discusses crude oil, describing it as an unrefined petroleum product known as 'black gold' and highlights major producers and consumers worldwide. It addresses the fall in crude oil prices since mid-2014 due to various economic factors, including increased shale oil production in the U.S. and OPEC's production decision, while assessing the advantages and disadvantages for India concerning current account deficits and export impacts. Key crude oil benchmarks such as WTI, Brent, and Dubai are also summarized.

1. RAVI SHANKAR TIWARI
International College of financial planning 2014-15

2. What is crude Oil?
• A naturally occurring, unrefined
petroleum product composed of
hydrocarbon deposits.
• It is often called as "black gold”.

3. Leading producers of crude
oil in the World.
0
2
4
6
8
10
12
14
USA SAUDI
ARABIA
RUSSIA CHINA CANADA IRAN IRAQ UAE MEXICO KUWAIT
Achsentitel
Achsentitel
Datenreihen1

4. OPEC
 ORGANISATION OF PETROLEUM EXPORTING COUNTRIES.
LIST OF COUNTRIES IN OPEC.
 ALGERIA
 ANGOLA
 ECUADOR
 IRAN
 KUWAIT
 LIBYA
 NIGERIA
 SAUDI ARABIA
 UNITED ARAB EMIRATES
 VENEZUALA

5. Leading Consumers of crude oil in the
world.
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
USA CHINA JAPAN RUSSIA INDIA BRAZIL SOUTH
AFRICA
CANADA GERMANY SOUTH
KOREA
Datenrei
hen1
DATA:USA ENERGY INFORMATION ADMINISTRATION,2013
THOUSANDS BARREL PER DAY

6. Crude Oil Benchmarks
• A benchmark crude or marker crude is
a crude oil that serves as a reference price
for buyers and sellers of crude oil.
• There are three primary benchmarks,West
Texas Intermediaries(WTI),Brent Blend and
Dubai Crude.

7. BRIEF DESCRIPTION OF BENCHMARKS
• WTI-West Texas Intermediaries is used
primarily in the U.S.
• BRENT CRUDE-Brent crude is used primarily
in Europe and in the OPEC market basket
which is used around the world. This
benchmark is a mix of crude oil from 15
different oil fields in the North sea.

8. • Dubai crude-It is also known as Fateh, most of the
oil producers in the Middle East have taken the
monthly spot price average of Dubai and Oman as
the benchmark for sales to the Far East.
• Other well known benchmarks are-
 The OPEC basket refernce used by OPEC.
 Tapis crude which is traded in Singapore.

9. Oil Industry

10. Present scenario
Crude oil price has dropped significantly from June -2014
till date.It had risen upto $115 per barrel and now around
$55-60 per barrel,volatality is still there.
Reasons behind the fall in crude oil price:
 Fall in growth rate of chinese economy.
 Eurozone crisis especially because of greece.
 Rise in the production of shale oil and gas in USA.
 OPEC’s decision of not cutting the crude oil production.
 In a nutshell supply is being more than its actual demand.

11. Advantages for India
 Current account deficit has improved.Based on CRISIL
report,it was estimated that every $10 decline in average
oil price has reduced CAD by $10-12 billion.
 Various monetary policy has been implemented in order
to bring down the inflation.
 Interest rate has gone down.
 Many industry dependent oil crude oil has been also
benefited immensely such as,paint,tyre, etc...

12. Disadvantages for india
 Fall in price has helped India in reducing the import bill but
it has also affected the export significantly.
 OPEC,Russia,Columbia,Canada and Mexico accounts for
20% of merchandise export of India,OPEC alone stands
for 18.4% of India’s export.
 Slowdown in expected growth rate of China,weak
Eurozone and Japan have created concern for
India.These countries accounts for 20% of India’s export

13. THANK YOU!!