Singapore could face higher inflation if surge in oil prices persists: Analysts

Asia's oil-reliant economies would start to feel the pain of added cost burden

Tugboats berthing an oil tanker at Qingdao port in China's eastern Shandong province last month. China, India, Japan and South Korea are among the world's top buyers of oil. Smoke filling the sky after an attack on the Aramco facility in Abqaiq, Saud
Smoke filling the sky after an attack on the Aramco facility in Abqaiq, Saudi Arabia, last Saturday. The aim is to restore about a third of the disrupted production by early this week, but it could take months to return to full capacity. PHOTO: REUTERS
Tugboats berthing an oil tanker at Qingdao port in China's eastern Shandong province last month. China, India, Japan and South Korea are among the world's top buyers of oil. Smoke filling the sky after an attack on the Aramco facility in Abqaiq, Saud
Tugboats berthing an oil tanker at Qingdao port in China’s eastern Shandong province last month. China, India, Japan and South Korea are among the world’s top buyers of oil. PHOTO: AGENCE FRANCE-PRESSE
Seow Bei Yi
Business Correspondent
Updated
Sep 17, 2019, 05:57 AM
Published
Sep 17, 2019, 05:00 AM
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Asia's oil-reliant economies could take a hit if crude prices remain higher, with Singapore facing potential fallout in the form of inflation, analysts said yesterday.

They were responding to the surge in oil prices after drone strikes on Saudi Arabian production facilities last weekend, which took out about 5 per cent of the global supply. The processing plant at Abqaiq, where one of the attacks took place, handles crude from Ghawar, the world's largest conventional oil field.

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A version of this article appeared in the print edition of The Straits Times on September 17, 2019, with the headline Singapore could face higher inflation if surge in oil prices persists: Analysts. Subscribe

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