Friday, February 25, 2011

Malaysia Hopeful World Oil Price Will Stabilise Soon, Says Awang Adek

BACHOK, Feb 24 (Bernama) -- Malaysia hopes global oil market will stabilise soon so that the impact of the current volatile situation is not significantly felt in Malaysia.

Deputy Finance Minister Datuk Dr Awang Adek Hussin said it was the fervent hope of the international community that the political turmoil and civil unrest in several oil producing countries like Libya would come to an end soon.

"Oil price is very sensitive, the price can go up and come down based on certain indicators (like conflicts).

"If what is happening in certain countries like in Libya continues unabated, it will cause oil price to spiral," he told reporters after giving cash aid to fire victims of Ladang Kampung Kuau Besar/Beoh in Jelawat here Wednesday.

Fourteen people received RM3,000 each.

The latest report from Paris said one-fourth of the total crude oil production from Libya has been stopped following continued violent street demonstrations in that country, prompting oil companies to issue a warning that oil supply in the third largest oil producer in Africa would be disrupted.

Oil companies like Total, Repsol, Eni and BASF as well as OMV from Australia had warned that they would downsize or stop oil production in Libya.

This latest development will have a serious impllication on oil supply from Libya which produces high quality oil as much as 1.6 million barrels per day or two per cent of the total world oil production.

Responding to the heightened tension following widespread civil unrest and continuous street protests in Libya, Awak Adek said it was still premature to say Malaysia would be adversely affected by the political turmoil in that country.

"It is still too early for Malaysians to feel the impact here (Malaysia). Nonetheless, we hope the political conflict in Libya will not prolong as the crisis will also give a blemished image to Islamic nations worldwide," he said.

Two days ago, the government said it was examining several options not to raise petrol prices in the near future though several countries have raised fuel prices twice in three months following spiralling world oil prices.

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob had said his ministry and the Finance Ministry were jointly studying other options to avoid an increase.


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