Guar gum demand will increase with increasing fracking Crude Oil production.

Production of fracking oil Gas increasing in the USA. Prices of crude oil also started to go don from it the higher level of this year. Indian guar gum industry supplies fast hydration guar gum powder as drilling chemical to the fracking based crude oil production industry. Prices of guar gum and guar were increasing with increasing crude oil production. Guar seed and guar gum traders are taking decreasing crude oil prices as a negative sentiment. Indian guar gum industry is coming under selling pressure with falling crude oil prices.

Indian guar gum industry should take it positively. Prices are falling due to increase in production of fracking based crude oil. OPEC crude oil production is still stable and OPEC countries agree to cap on crude oil production. Russia is also part of that agreement. The USA is emerging as leading crude oil producer in the world. The demand for Indian guar will increase with these factors. If prices of crude oil fall due to increase in crude oil production by OPEC countries, then it can be a warning for Indian guar gum industry.



The USA put a ban on crude oil export in the year 1975. The USA lifted this ban in the year 2015. Now the USA is aiming to become a  leading exporter of Crud oil. Indian Guar gum industry should not come under pressure of current crude oil fall. OPEC countries are agreed to cut production till March-18. USA would like to use this time as opportunity and it will saturate the world crude oil market with USA crude oil.

Guar Gum Farming 

The USA put a ban on crude oil export in the year 1975. The USA lifted this ban in the year 2015. Now the USA is aiming to become a  leading exporter of Crud oil. Indian Guar gum industry should not come under pressure of current crude oil fall. OPEC countries are agreed to cut production till March-18. USA would like to use this time as opportunity and it will saturate the world crude oil market with USA crude oil. 

Indian guar gum industry should not react negatively too early with falling crude oil prices. The demand for Indian guar gum will increase with increase fracking based oil production. Currently, all the factors are positive for guar seed and Guar gum. The new production will come after 8 months, peak arrival period of farmer’s production also end, Production of guar seed is lower than previous years, export of guar gum is higher than the previous year. Export data of guar gum for January and February will come very positive.

Indian guar gum industry will benefit from competition in OPEC crude oil production and fracking based crude oil production USA. In the year 2013 OPEC put the pressure on Shale oil production by increasing the production. This time Shale oil crude production will put pressure on OPEC. Because the financial position of OPEC is not good enough to do competition with Shel crude oil. Except for domestic figures, Guar will benefit from this competition.