By: Kong Leang Hour
International: Analysts and experts say the conflict situation in the Middle East is affecting ASEAN economies as a result of rising inflationary pressures and uncertainties.
According to the International Energy Agency (IEA), tensions pushed crude oil prices to $ 90 a barrel on April 5, up nearly $ 8 a barrel. Early March. At the same time, the World Bank claims that ongoing tensions in the Middle East threaten recent efforts and progress made in tackling global inflation.
“Rising oil prices combined with the strength of the US dollar against the dollar,” experts said. ASEAN currencies will push up consumer prices, raise interest rates and erode business confidence.
Dio Herdiawan Tobing, head of public policy for Asia at the World Benchmarking Alliance, said rising oil prices were affecting ASEAN member states as they imported at least 50 percent of their crude demand. They are from the Middle East.
He added that the rise in oil prices is a signal that ASEAN must strive to promote its renewable energy development as it will reduce the region’s vulnerability to geopolitical tensions. Meanwhile, Josua Pardede, chief economist at Permata Bank in Jakarta, Indonesia, said oil-importing countries such as Indonesia could face rising inflationary pressures.
David Gibson-Moore, President and CEO of Gulf Analytica, Advisor Business to international companies and family offices in Dubai have predicted hostilities in the Middle East could push crude prices above $ 100 a barrel.
Source: The Nation
