Guar is one of the most frequent vegetables we encounter on our dining tables. But only today I read in a newspaper "Guar prices increase post BREXIT as crude oil prices stabilize."
This headline surprised me! How come a vegetable,we know to be very tasty and humble be affected by Crude oil prices.
To know this I researched thus.
Fracking: It is the process of injecting liquid at high pressure into subterranean rocks, boreholes, etc. so as to force open existing fissures and extract oil or gas.
The liquid mentioned in the above line is the Guar gum. So the product which comes out of Guar (Guar Gum) is used in a process (Fracking) which is used in extracting the oil or gas.
Hence post the BREXIT, even though the crude oil got a beating they later stabilised due to supply cuts in Venezuela,Nigeria and the US the prices stabilised. As the supply fell down in comparison to the demand, the price of crude oil increased.
This has led to the increase in the prices of Guar as well due to increased demand from the American nations.
Quick facts:
1.Only 10% of the Indian production stays within the country and the remaining 90% is exported for shale gas and oil industries.
2. India is the largest producer of Guar amounting to 80% of the produce, followed by Pakistan. Take that Pak!!
This headline surprised me! How come a vegetable,we know to be very tasty and humble be affected by Crude oil prices.
To know this I researched thus.
Fracking: It is the process of injecting liquid at high pressure into subterranean rocks, boreholes, etc. so as to force open existing fissures and extract oil or gas.
The liquid mentioned in the above line is the Guar gum. So the product which comes out of Guar (Guar Gum) is used in a process (Fracking) which is used in extracting the oil or gas.
Hence post the BREXIT, even though the crude oil got a beating they later stabilised due to supply cuts in Venezuela,Nigeria and the US the prices stabilised. As the supply fell down in comparison to the demand, the price of crude oil increased.
This has led to the increase in the prices of Guar as well due to increased demand from the American nations.
Quick facts:
1.Only 10% of the Indian production stays within the country and the remaining 90% is exported for shale gas and oil industries.
2. India is the largest producer of Guar amounting to 80% of the produce, followed by Pakistan. Take that Pak!!
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