posted at 03:00
Author Name: Michael Kelley
Heres How The Oil Crash Is Affecting Asian Countries
Partly because of the shale oil boom in the U.S., the world is awash in oil but demand from major economies is weak so prices are falling. In Asia, lower oil prices are unambiguously positive for trade balances and government finances as the region is a major oil importer and some nations subsidize the price of fuels. Beijing has cut prices repeatedly this year in line with declining crude prices. Fuel prices have risen because the government has cut its expensive subsidies, more than offsetting the decline in global oil prices. The higher prices triggered street protests, with some questioning why fuel prices were rising in Indonesia at a time when they were dropping elsewhere. The latest fall in crude prices may help ease tensions once it flows through to pump prices. Starting Dec. 1, prices will be set at the end of each month based on a monthly average price. Fuel prices have been steadily declining with the latest cut on Tuesday, but Energy Undersecretary Zenaida Monsada said if the price of oil continues to fall, it could mean job cuts for Filipino workers overseas.

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