Increased demand from China and India has also pushed the prices further. With the increase in demand, the prices have hit all-time highs. There is also a demand-supply mismatch leading to a hike in prices across the globe.

However, according to OPEC (Organization of Petroleum Exporting Countries) president Chakib Khelil, the increase in prices is not due to a fall in production but due to speculation that the dollar will slide further. According to him, this gives speculators the opportunity to invest in oil.

On March 5, 2005, oil prices hit $50 per barrel. By June 2008, in a span of three years, oil prices doubled to cross the $100-mark.

However, the International Energy Agency says that high prices were not just speculation. The demand is growing despite a slowdown in the US. Refining margins may continue to be high because of a shortage of petrol and diesel globally.