Tag Archives: oil price

saudi arabia’s concerns amidst favorable oil prices

 The way oil price increases, it scares even oil producing nations who stand to gain from it for now.

 

Saudi Arabia says the hikes are not justifiable given that the market has sufficient supplies.  It is calling for a meeting among oil producing nations, consuming nations and oil companies spanning the supply chain, to discuss how to deal with it.

 

The Saudi’s official concern is that spiraling oil prices ‘could affect the world economy’.  I think they are also worried about how the phenomena could backfire against oil rich countries in the long run.

 

Everyone is now driven to research and invest in renewable forms of energy.  Dependency on oil aside, these alternatives also hold promises of cleaner environments.

 

One day they might just make oil obsolete.

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bold move

 For a newly sworn-in government, Taiwan’s Kuomintang is very gutsy indeed. 

 

Barely a month into office, it raises fuel price by 13%.  It takes effect today, a week ahead of public anticipation, to beat panic buying and hoarding.

 

The action looks even more unpopular when compared to rival Democratic Progressive Party’s shrewd election manoeuvre of freezing domestic fuel prices last November.

 

But Ma Yong-jeou is only being realistic given soaring crude oil prices. 

 

Fuel is a politically sensitive commodity in many countries, especially in Asia:

 

President Yudhoyono is seriosly weighing the need to reduce subsidies, which eat into Indonesia’s budget, against lessons in history.  Such an action had not only toppled Suharto’s government in 1998, it had also sparked violence and rioting across the nation.

 

Malaysia, too, is preparing the public mentally for eventual subsidy reduction.  For now, it has taken the step in banning Singapore and Thailand vehicles from pumping at stations within 50km of the borders.