Global oil prices are at their lowest levels in 4-years, and retail petrol prices in Malaysia have fallen. The typical RON95 petrol buyer has now decided to pump the more expensive RON97 petrol just because it price has fallen. Prior to this when RON97 was more expensive, car owners complained and were cautious. As soon as prices dip they go all out and these past few days we have seen many stations in affluent neighbourhoods post ‘Sold Out’ signs on their RON97 pumps. This is typically a Malaysian wasteful attitude and we need to re-evaluate our fuel wastage.
The price of WTI crude oil in the U.S. closed at USD69 a barrel, a level last seen in May 2010. In the three days since then, the price has fallen further, to USD66.15 a barrel as of last Friday.
While many analysts had expecting the Organization of the Petroleum Exporting Countries (OPEC) to reduce production levels at its Thursday meeting. But Saudi Arabia insisted that production remain at current levels, according to CNN. Other OPEC nations, including Nigeria, Russia, and Venezuela have a higher cost base than does the Saudi kingdom, reputedly requiring prices of USD90 per barrel to make money. For sure the price will rise and when this happens we will feel the pinch in more ways than imaginable. Let’s stay prudent this coming months with our petrol usage.
