There is no alternative but to free the oil sector from price management and create a vibrant competitive market. This entails removal of entry barriers, third-party access to key oil infrastructure such as ports and terminals, says T N R Rao. IF ONE thought that the credit crunch triggered by subprime market seemed to be passing, an ominous crisis in the escalation of oil prices seems to be looming. As the oil price keeps up its relentless climb, it threatens to be more damaging to the world economy than the credit crisis. Ever rising crude prices are throwing up new challenges to developing countries to contain their adverse effects on their economies. But before addressing them, it is necessary to keep in mind two important perspectives currently emerging on the likely continuance of such a high price regime. Since a long time, prices of the physical barrel is determined more by the oil futures market and less by demand supply considerations. As the price is moving towards $150/bbl, analysts believe that at a conservative calculation, at least 60% of the price is estimated to come from unregulated future speculation by hedge funds,