KUALA LUMPUR: The ripple effects of higher oil prices on Asia Pacific economies and globally are expected to be felt if the current development of Middle East tension is not defused soon, said a research house.
Moody’s Analytics said as most APAC economies are net oil importers, it could leave them vulnerable to global oil spikes with impacts varying across countries. Still, broadly there are three main challenges from rising oil prices. It also said higher oil prices come at a particularly bad time for the APAC economies, especially with the path of disinflation has already stalled in some countries.
The Norway-based independent energy research and business intelligence company said that increasing geopolitical tension has undoubtedly complicated the job of OPEC+ to carefully manage the oil market.