What’s going on with our oil price again? The price of crude oil has increased sharply to its highest since year 2008 financial crisis at US$105.40/barrel on 25th March 2011. In perspective, the price of crude oil averaged US$79/barrel in year 2010. According to market researcher, the price of crude oil will continue to climb for the whole of this year.
With this crude oil price heading north, there’re concerns that it will affect our country economic recovery. Based on research house assessment, the global growth may drop 0.5% if the crude oil increased from US$95 to US$105 per barrel. If the crude oil further increasing then we will suffer the inflation issue and dampen our domestic demand as well as economic growth.