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For the first time since November 2007, India's crude oil imports in May showed a y-o-y decline, decreasing by 2% compared to May 2007, yet, average crude oil imports for the period January-May 2008 were still 3% higher than in the same period of last year, supported by an economy
that grew by 9% and above for three successive fiscal years, to be the world's fastest-growing major economy after China. India's GDP growth was 8.8% for the first quarter of this year, outstripping earlier forecasts of 8.2%. India's product imports declined at a higher pace than its crude oil imports in May, averaging about 0.44 mb/d, 126,000 b/d or 22% lower than the all-time high average in the previous month, and 14% lower than a year earlier. Apart from LPG imports, which increased by 21% compared to the previous month, imports of all major products were lower in May compared to the previous month, with mixed fluctuations compared to a year earlier.

The biggest drop was in gasoil imports, which alone decreased by 71,000 b/d or 44% compared to April's all-time high average of 161,000 b/d, yet gasoil imports in May were 160% higher than a year earlier. Naphtha imports declined in May by about 34,000 b/d or 21% compared to the previous month to reach about 126,000 b/d, 34% lower than a year earlier. Jet fuel imports declined also by 21,000 b/d in May compared to the previous month, but were 9% higher than a year earlier. Fuel oil imports declined in May by 17,000 b/d or 44% compared to the previous month, and were 39% lower than a year earlier. Gasoline imports were about 6,000 b/d or 29% lower than in the previous month, but were 15% higher than a year earlier.

Conclusion

From all the above discussions and data analysis, we conclude that OPEC is an inter-governmental organization which will control the major oil producing countries. Even though the non-OPEC countries are also present but these are not working under one umbrella which is causing competition with each other, and there is no scope for other countries to enter into the market because the crude oil resources are less.

Even the experts says that OPEC is monopoly, but due to the presence of non-OPEC countries which will also affect the oil prices and cause competition to affect fixing prices of crude oil, which will shows us that OPEC is an oligopolist.

References