China's real GDP has increased steadily at an astonishing rate of 10% per year over the past few years. Simultaneously with strong economic growth, energy demand is also increasing rapidly. Figure 1 clearly shows the oil consumption and production behavior of the country which tends to import from different countries. In 2009, China produced 3,798 thousand barrels per day and consumed 8,200 thousand barrels per day of oil. This means that China must import approximately 4,402 thousand barrels per day to meet its daily consumption needs. In 2007, China was declared the world's third-largest net importer of oil, behind the United States and Japan. In July 2005, the Chinese central bank introduced the reform of the exchange rate system. After the reforms, the yuan's exchange rate was set based on a basket of other currencies. At the end of 2007 the yuan appreciated by around 7.5%. against the dollar, as a result of these reforms. IndiaAccording to the Oil & Gas Journal (OGJ), India ranked second in proven oil reserves in the Asia-Pacific region, after China, in January 2009. With a Con a population exceeding 15% of the world's population and high rates of economic growth, India has become a major consumer of energy resources. In 2006, India was the sixth largest oil-consuming country in the world. The global credit and financial crisis has slowed India's significant economic growth, especially in the manufacturing sector. Due to this crisis, GDP growth rates fell in 2007 from 9.3% to 5.3% in the last quarter of 2008. Despite this slowing economic growth, India's energy demand continues to increase. The country's accelerated growth with...... middle of paper ...... promised to increase oil production to 4 million barrels per day by 2020. Kuwait survived the economic catastrophe largely thanks to surpluses of budget generated by high oil prices, recording its tenth consecutive budget surplus in 2008, before slipping into deficit territory in 2009. Kuwaiti dinar exchange rates are quite stable when compared to the dollar. Figure 6 above shows the production and consumption capacity of the country which clearly depicts the export behavior of the country. In 2009, total oil production was 2350 thousand barrels per day, while consumption was only 320 thousand barrels per day, which allows the country to export oil to other nations and increase their income level. From the figure we can also see the impact of the Iraq-Kuwait war in 1992 on the Kuwaiti oil market and its production