Record-High Oil Prices Are a Burden on Asian Countries: Singapore PM.
Asian countries are concerned about the rise of oil prices to record highs and their impact on consumers, Singapore's leader said, as crude futures approached US$100 a barrel.
"For those of us who are not oil exporters and we import all our oil, this is a burden which is growing," Prime Minister Lee Hsien Loong said late Wednesday. "It is particularly a burden on the low-income groups and it's also a factor in increasing the inflation rate and the cost of living for consumers in their countries."
Lee quoted the leader of India, which subsidizes fuel, as telling other Asian heads of state during meetings in Singapore that the cost of energy is of greater concern to him than the effects of climate change.
Rising oil prices are also making it costlier for many countries in the region to subsidize fuel for their citizens, even if they are earning more from oil exports, Lee told reporters. "For the net exporters, it means more revenue, but ... many of them have held domestic prices low and subsidized their domestic oil consumption," he said. "As world oil prices rise, that increasingly becomes a problem and a burden on their finances."
Also in Singapore, Philippine Trade Secretary Peter Favila said Southeast Asian countries discussed the rise in oil prices, but had not come up with any recommendations on how to address the issue. Favila said the Philippines is placing greater emphasis on finding alternative, renewable sources of energy. "We need to negate the effect of an increase or a high oil price because 40 percent of our requirements are imported," he told reporters.
Oil Flirts with Record $100 a Barrel
Analysts said it was a pause, not a retreat for crude futures that reached as high as $99.29 in electronic trading overnight. "Not exciting enough to get us over the hump just yet," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.
Overall crude inventories fell, and distillates including heating oil dropped more than expected last week, the Energy Department's Energy Information Administration reported. The mixed report did little to shake prevailing view that oil supplies will tighten amid rising global demand, particularly from fast-growing economies in China and India. "It's two steps forward, then one back in terms of this week's inventory cushion," said Tim Evans, an analyst at Citigroup Inc. in New York.
Wednesday's inventory report could mean more bad news for heating oil customers already expecting costs to rise 22 percent this winter. Heating oil futures fell 0.27 cent to settle at $2.6874 a gallon on the New York Mercantile Exchange after earlier hitting $2.7154, a new record.
Light, sweet crude for January delivery fell 74 cents to settle at $97.29 a barrel on the New York Mercantile Exchange. Before the inventory report, prices rose as high as $99.29 a barrel in electronic trading to break the previous intraday record of $98.62 set earlier this month. Crude prices are within the range of inflation-adjusted highs set in early 1980. Depending on how the adjustment is calculated, $38 a barrel then would be worth $96 to $103 or more today.
A swoon in the stock market also pressured oil prices Wednesday. Energy investors worry that falling equities are a symptom of a weakening economy, which would use less oil and gasoline. Analysts said trading in energy futures was volatile Wednesday due to light volumes before Thanksgiving. The Nymex will be closed Thursday and will close early Friday.
"This is holiday trade, and some pension fund comes in with a sizable order ... and you're down half a buck," said Jim Ritterbusch, president of Ritterbusch & Associates, in Galena, Ill.
Asian countries are concerned about the rise of oil prices to record highs and their impact on consumers, Singapore's leader said, as crude futures approached US$100 a barrel.
"For those of us who are not oil exporters and we import all our oil, this is a burden which is growing," Prime Minister Lee Hsien Loong said late Wednesday. "It is particularly a burden on the low-income groups and it's also a factor in increasing the inflation rate and the cost of living for consumers in their countries."
Lee quoted the leader of India, which subsidizes fuel, as telling other Asian heads of state during meetings in Singapore that the cost of energy is of greater concern to him than the effects of climate change.
Rising oil prices are also making it costlier for many countries in the region to subsidize fuel for their citizens, even if they are earning more from oil exports, Lee told reporters. "For the net exporters, it means more revenue, but ... many of them have held domestic prices low and subsidized their domestic oil consumption," he said. "As world oil prices rise, that increasingly becomes a problem and a burden on their finances."
Also in Singapore, Philippine Trade Secretary Peter Favila said Southeast Asian countries discussed the rise in oil prices, but had not come up with any recommendations on how to address the issue. Favila said the Philippines is placing greater emphasis on finding alternative, renewable sources of energy. "We need to negate the effect of an increase or a high oil price because 40 percent of our requirements are imported," he told reporters.
Oil Flirts with Record $100 a Barrel
Analysts said it was a pause, not a retreat for crude futures that reached as high as $99.29 in electronic trading overnight. "Not exciting enough to get us over the hump just yet," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.
Overall crude inventories fell, and distillates including heating oil dropped more than expected last week, the Energy Department's Energy Information Administration reported. The mixed report did little to shake prevailing view that oil supplies will tighten amid rising global demand, particularly from fast-growing economies in China and India. "It's two steps forward, then one back in terms of this week's inventory cushion," said Tim Evans, an analyst at Citigroup Inc. in New York.
Wednesday's inventory report could mean more bad news for heating oil customers already expecting costs to rise 22 percent this winter. Heating oil futures fell 0.27 cent to settle at $2.6874 a gallon on the New York Mercantile Exchange after earlier hitting $2.7154, a new record.
Light, sweet crude for January delivery fell 74 cents to settle at $97.29 a barrel on the New York Mercantile Exchange. Before the inventory report, prices rose as high as $99.29 a barrel in electronic trading to break the previous intraday record of $98.62 set earlier this month. Crude prices are within the range of inflation-adjusted highs set in early 1980. Depending on how the adjustment is calculated, $38 a barrel then would be worth $96 to $103 or more today.
A swoon in the stock market also pressured oil prices Wednesday. Energy investors worry that falling equities are a symptom of a weakening economy, which would use less oil and gasoline. Analysts said trading in energy futures was volatile Wednesday due to light volumes before Thanksgiving. The Nymex will be closed Thursday and will close early Friday.
"This is holiday trade, and some pension fund comes in with a sizable order ... and you're down half a buck," said Jim Ritterbusch, president of Ritterbusch & Associates, in Galena, Ill.
1 comment:
i wonder what will happen when it touched $100
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