In economic theory monopsony is a market structure in which one large buyer controls big portion of the market and thus exercises bargaining power.
After 2017, China has overtaken United States to become the largest oil importer. China in last year imported 239.2 billion $ worth of crude oil from 15 different countries.
India is third largest oil importer after US and China and roughly imports 125 billion US dollars worth of crude oil every year.
The rising purchasing power of private buyers in China and India has positioned both countries close to having monopsonic power in the oil world.
In last week of April a high level delegation from Chinese National Energy Administration visited India, to discuss forming a block of energy importing nations.
This block will also be beneficial to other Asian importers as this will reduce the Asian premium.
Asian premium
Owing to the dependence of Asian nations on Middle Eastern countries to supply oil, these oil exporting nations charge a premium on their exports to Asian countries. West in contrast need not to pay such extra amount.
India and China have repeatedly raised their voice against this so called Asian premium but to no avail.
Efforts are underway to make Japan and South Korea-world’s fourth and fifth largest oil importers- part of this block. The emergence of this energy hungry block could tilt the power away from OPEC.
Popular Posts
-
Pakistan has the largest land holdings in the region. At the time of partition both Pakistan and India inherited feudal class. But India aft... -
FBR, Pakistan ’s Tax collecting agency has recently issued the list of top tax payers in the country. Pakistani tax laws provide for 4 cate...
-
Agriculture sector contributes a lion share in Pakistan ’s GDP. But presently Pakistan ’s 40% agricultural produce is lost because of bad ...
-
Interwood Mobel is Pakistan’s largest producer of wooden furniture. Interwood Mobel is founded and run by Farooq Malik, who is a former go...
-
After 2008 Dubai property market learned a lot from the crisis. Laws and regulations were improved. Property transfer fee has be... -
REITs (Real Estate Investment Trusts) are companies that pool funds from investors. This fund then is used to own or finance income produci...
-
Alshair Fiyaz and his brother Javaid Fiyaz are two Pakistani investors. Fiyaz family is estimated to be billionaire and has estimated wealt...
-
Saudi Arabia is rich in oil and is the largest oil exporting country. It has 19 th largest economy. It has many merchant families involved... -
Below is a list of richest Pakistani expatriates along with their estimated worth. This list only shows how well they are doing in their r...
-
Recently Facebook went public. Its value is above 100 billion us dollars. There are many internet companies that went public and are eno...
No comments:
Post a Comment