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Oil fears? El Nino 'a bigger worry' for Singapore

Published on Jun 24, 2014 9:19 AM
Farmers on a rice paddy field near Subang, in Indonesia's West Java province, on May 27, 2014. -- PHOTO: REUTERS

The Iraq crisis will not, in all likelihood, have a major impact on Singapore's economy, say oil industry experts and economists.

They argue that the current conflict is unlikely to cause major disruptions to oil supplies even though oil prices have spiked since the crisis erupted.

In fact, some analysts caution that the greater threat to local inflation is the El Nino weather phenomenon, which could send food prices soaring amid crop failure.

"Currently, it's a domestic problem, not an international one - that makes it different from the (first) Gulf War which was between Iraq and Kuwait," oil industry consultant Ong Eng Tong told The Straits Times yesterday.

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