Here in Singapore, we often hear the fluctuation of oil prices. If it rises, we will sulk but if it falls, we will be in high spirits. Regardless of the fluctuation, we will surely be affected. Fluctuating oil prices affect everyone and Singapore’s economy in general.
We have to explore how the fluctuating oil prices affect us. Here are the impacts of oil prices:
- Transport prices: When we say fluctuation, it entails changes of value frequently or shifting back and forth with uncertainty. It is better if the prices are lower but if the prices are higher, the transport sector will be affected. This means higher fares or higher petrol for people who own private cars.
- Property prices: Rationally, the property prices do not imitate the rise and fall of oil prices but historically, we know that when the oil rise and fall, all things will follow. We only need to know that our consumption of oil escalates in times of economic growth which will result to increased oil prices. In times of economic growth, people are encouraged to buy more properties. If there is no economic growth at all, people may restrict buying of properties.
- The economy in general: As mentioned earlier, the fluctuating oil prices affect the local and the global economy. If the prices are low, Singapore, being dependent to other countries for oil, can benefit from this phenomena. This means that households can have better spending power. On top of that, operational costs for business will decrease. However, for oil refinery sectors, the lower prices may slow down their growth.