How does the crude oil price affect Singapore Economy?

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A continual decrease in crude oil price is observed from past so many years.

Crude oil signals suggests that it can fall up to US$ 35 for a barrel. Moreover, Singapore being the oil importer, affects Singapore Economy on a large scale.

Generally, Singapore refines oil for making it a perfect fit for exporting. Thus, Singapore largely imports oil so that it can refine it. Because decrease in oil prices leads to decrease in the price of refining cost and in return a higher profit is returned in terms of re-export of crude oil making the crude oil industry more lucrative for Singapore economy.

Reduction in crude oil helps’ Singapore economy to enhance thus a higher GDP is expected.

Many a times it is observed that decrease in the crude oil price climbs to depreciation of the currency as the general prices observe a downfall. This could lead to excessive utilization of expansionary exchange rate policy.

A clear observation is concluded by the job cut (approximately 8000 employees) announcement by worlds’ largest oilrig builder. This indicates the depreciation effect on the country’s economy.

With a fall in crude oil price, the commodity markets has gone more bullish and thus various investors of Crude oil largely depend upon the crude oil trading tips in order to invest with a bearable risk taking capacity.

Here are few charts that can help you understand that how the crude oil price has altered in just a week:

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And 180 day’s graph shows the change in crude oil market:

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Also it has been observed that a change in Crude oil also leads to a change in real estate market of Singapore.

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As the economy is depreciating because of crude oil price cut, the unemployment ratio has increased which in turn affects the buying pattern of real estate and hence a low demand is observed in this industry as well.

Thus being commodity investors, one must always keep an eye on latest crude oil trading signals and also measure what and how the other countries and industries are suffering because of Crude oil investments.

Conclusion:

Decrease in crude oil price is helping the consumers of Singapore as they have to pay less for buying oil and also depreciation is observed which gives them an opportunity to improve their living styles and patterns, and also extra Ringgits to invest in commodity oils with the most promising Comex trading tips.

Reference: http://www.mmfsolutions.sg/blog/crude-oil-price-affect-singapore-economy/

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