Some people don’t understand how this impacts the Malaysian currency. Let me break it down for you. About 15% of Malaysian GDP is directly sourced from Petroleum. 50% of Malaysian government revenue comes from Petronas. I could be slight wrong on the stats but I am materially correct.
What do you think a 70% oil price drop is going to do?
Two months ago Crude Light was trading at USD 65 per barrel. Today it is at USD 30 per barrel. That is more than 50% drop. If it hits USD 20 per barrel, that is a 70% drop.