Thursday, September 4, 2008

Fuel Prices Will Drop ? Any Impact On Our Economy ?

Crude Oil prices drop again. This time it breaks its recent low of USD 111.50 a barrel (15.08.2008).

On Tuesday, the contract settled at USD 109.71 a barrel, down USD -5.75 from the close of trading Friday, before the Labor Day weekend in USA. At one point Tuesday, it fell as low as USD 105.46, its lowest level since April.

This time around in this few weeks we might expect another cut in fuel prices. When the governments announce the cut in fuel prices recently, it did according to a level of USD 115.00 a barrel.

But today we might asking if the fuel prices going down to a level about RM 2.30 to RM 2.40 per litre for the petrol, how big the impact would be on our Malaysia economy? For me it didn't make any different to our Malaysia stock market.

It would bring some relief to our inflation rate. As long as our political situation is about the same as previous week, KL Composite Index will look almost the same, cannot go up but more potential to go down.

The only hope for our market to regain its strengths is to depend on the changes in our political situation. CHANGE OF GOVERNMENT.

By the time when I posted this article, the Crude Oil prices for October delivery went down about USD -1.96 a barrel to USD 107.75 a barrel.

Share prices remain week in Malaysia, a check on current global stock market especially in Hong Kong stated that the Hang Seng Index might break the 20,000 points any time from now. Most of the major market index in these regions is trading near to the low.

Dow Jones Industrial Average (DJIA) appears to have been exhausted. It might break the 11,000 points. When I monitor its movement yesterday, DJIA had make several attempt to push the Index to cross the 12,000 points and it fails.

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