Thursday, December 11, 2014

The country which benefits the most from falling crude oil is....

Lower crude prices does kind of result in lower petrol prices due to the government now moving petrol prices to a managed float.  But the other side of the coin is the weakening currency.

Moving from 80 USD to 70 USD dollar crude oil is a 12.5 percent discount.  The ringgit has also moved from 3.3 to 3.5 which means crude in Ringgit terms is going from 264 to 245 which is a 7.5 percent discount.  So while the nation does benefit in terms of lower cost of petrol to some extend its not as much.

So which country gets the biggest affect in lowest crude oil...ding ding ding.  The USA.  They capture the full effect of a fall in crude oil price which is 12.5 percent.  Business should definitely be good there.

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