Mukesh Ambani sees crude price touching $100 a barrel

14 May 2010

Mukesh Ambani, who controls the world's single-largest crude oil refining facility today said prices of crude oil could rise to three-digit levels soon.
       
"Crude oil prices are well above the $70 mark. We foresee an increase in crude price to three digits in the near future," Reliance Industries chairman, Mukesh Ambani, said at an industry conference.

He attributed this to the decline in refining growth and a sluggish market.

"I believe the petrochemical industry should reinvest and we have to reset our thinking and must innovate to tackle these issues," he said.

Despite oil woes, Ambani said, he expected India to emerge the world's strongest country economically with a $5 trillion GDP by 2020.

"Both India and China will create a huge demand as consumption of these countries will reach new heights. Thus, India is going to be a major manufacturing hub as consumption will increase," he added.

Obama blames Indians: But, even as emerging economies start realising their so far unrealised potential, US President Barack Obama said the craze for cars in India and China would push up oil prices further higher. Obama asked auto-loving Americans to use public transportation more to fight the oil price spike.

"Because one of the things, obviously, that we have to recognise is, is that no matter what we do, oil prices are going to be going up over the long term," he said during a visit to recession-hit Buffalo in New York.