Oil Prices Won't Stay Low For Long

Prime Minister Datuk Seri Abdullah Ahmad Badawi is asking everyone to pray that oil prices stay low. Why don't he ask everyone to pray that Petronas to discover a huge oil well beneath South China sea ?

Oil prices are affected by supply and demand. The only logical way for the price to drop is to reduce the global demand. And that would be very drastic, like removing cars using petrol from the roads, generating power plants using alternative energy, stop using heavy machinery and so on and so forth.

The glut in the oil prices is temporary and it won't be long that the price will go up again. But is Malaysia prepare for the next increase in oil prices ?

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TheStar

Pray that oil prices stay low, says PM

PUTRAJAYA: Petrol pump prices will be reviewed again on Oct 1 and if the present trend of crude oil prices continues consumers can expect some good news.

“So, please pray that the fuel prices won’t climb again or better yet, for it to drop further,” said Prime Minister Datuk Seri Abdullah Ahmad Badawi.

Abdullah said that if world market prices for fuel remained stable at US$109 for the rest of the year, Malaysians might even enjoy another 15 sen drop below the current rate of RM2.55.

“We will have to wait until the pump prices are revised come Oct 1 or by the middle of that month under our calculation formula.

“If world prices remain at US$109 per barrel until the end of the year, we can reduce prices by another 15 sen,” he said here yesterday.

However, he warned that prices could also go up if the crude oil prices increase.

On the ringgit weakening against the US dollar, Abdullah said the Government would not intervene.

“The value has dropped but not to a level that is too drastic or worrying.”