An analysis on global energy crisis and security

CHINA – Since the beginning of the new century, crude oil price has been increasing and broken the highest record many times. But the cost of production didn’t increase much, what’s the reason for the price hike?

During a forum held by the overseas edition of People’s Daily, experts have given their analysis about the situation.

Shen Jiru, a research fellow from the World Economic and Political Institute in Chinese Academy of Social Sciences (CASS) says oil supply is certain, but oil demand is increasing. Some accidents such as Hurricane Katrina and regional conflicts like Iraq war, or sanctions and embargo of oil to certain countries, all these can cause oil price hikes.

Peng Long, professor from International Business School of Beijing Foreign Studies University says oil has become a strategic resource in international relations and anti-terrorism struggle.

People’s Daily Online