LIMA (Peru), Nov 22 - The government cannot reduce the retail price of petrol and diesel continuously when global crude oil prices decline as they are volatile and can increase again within a short period.Lowering prices too fast and too low could also have an adverse impact on efforts to develop alternative sources of energy, Deputy Prime Minister Datuk Seri Mohd Najib Tun Razak said here on Friday.
The current low price of oil "is not sustainable, it's going to go up (and) when the price goes up, there will be a need to do a review," said Najib, who is in this Peruvian capital to attend the Asia-Pacific Economic Cooperation (Apec) summit beginning Saturday.
He was responding to questions on the impact of the low global crude oil prices on fuel prices in Malaysia, on Petronas and on the economy at a press conference with the Malaysian media at the Miraflores hotel here.
Najib spoke to media after performing the Friday prayers at the Peruvian Islamic Centre. He also gave a contribution of US$5,000 to the centre.
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1) Washington DC - Of the total U.S. government liquid fuel use, about 97% of that is consumed by the Department of Defense, making that agency the world’s single largest fuel-burning entity. But even within the U.S. DOD, the respective services are themselves gargantuan users of liquid fuel. According to data supplied by the Defense Energy Support Center, the interservice breakdown for fuel use is as follows: ii) Navy (including Marine Corps): 32%
iii) Department of the Army: 12% .
2) New York - Last week, the Paris-based International Energy Agency (IEA) released its World Energy Outlook 2008 - a 578-page book full of future supply, demand, and price estimates which this year also included an eagerly-awaited study of 800 of the world's largest oil fields.Considering that the price of oil has plummeted from $147 a barrel in early July to below $50 and that the global economic slowdown is putting a major damper on demand, that might not seem like such a good idea. But as the IEA study makes clear, the long-term supply and demand picture for oil continues to favor higher prices. Maybe much higher.
3) LONDON – Oil rose above $50 a barrel on Friday, rebounding from a three and half year low and buoyed by rallies in Europe and Asian equities on talk that China may cut interest rates later in the day.Oil has fallen by 11 percent this week taking it close to a $100 drop from its July record high and setting it on course for the steepest weekly decline since the week of October 6.
U.S. light crude for January delivery rose 96 cents to $50.38 a barrel at 7 a.m. EST, its first increase after five straight sessions of losses. Earlier it fell to $48.25, the lowest in three and a half years.
Courtesy to Reuters
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