Oil could be well, finally

As it turns out, it could be in consumers’ interests if diesel prices join petrol prices in being decontrolled, that is, being pegged to world prices instead of being artificially regulated by the government. Apart from the broad argument that if the government spends less on diesel subsidies, it will have more to spend on other welfare activities like healthcare, education and the like, a new report by Harvard Kennedy School projects that oil production is likely to increase substantially in this decade, and with oil demand remaining subdued due to a recessionary global economy, oil prices are likely to plummet in the medium term (the study says we could even face an oil price collapse, meaning prices could fall below $50 per barrel for one year).

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