Article with byline of TAN SRI DR MOHD IRWAN SERIGAR ABDULLAH
Dateline 2016-01-07, NST:
THE price of crude oil in the global market had fallen from the peak of US$110 per barrel in June 2014 to US$37 per barrel in December last year, primarily due to excess supply. The price had fallen almost 66 per cent in less than 18 months, causing alarm among countries dependent on oil revenue.
The large-scale production of shale oil by the United States is said to have increased its oil production, which contributed to the downward trend of crude oil prices. In addition, the 12-member countries of the Organisation of Petroleum Exporting Countries (Opec) have also decided to maintain the current oil production quota. The decision by some major producing countries to maintain their market position, even at a low price and subsidy rationalisation on petroleum products by many countries in the world such as India, China and Indonesia, also contributed to the declining trend in crude oil prices.