Monday, November 17, 2008

Crude Oil < USD57/barrel

Last Friday, I anticipated another cut in the Retail fuel price, but it was a major letdown, no announcement came out. The price of global Crude Oil is now below USD57/barrel, lower than the figure two years ago.

Shahrir had promised to lower the price but nothing materialized. The petrol price should by now retail at below RM1.90 per litre.

Several pump station had already pasted "pump rosak" (broken pump) on their regular petrol unit in anticipation of an increase in the retail price. Several station operators decided to defer replenishing their stocks ahead of any government move to cut any losses. Some had to resorted to these tactics until their stocks all dried up.

How low will the crude oil price go? Unsure, but consensus says that the chances for the prices to go higher is generally very minimal.

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