SAN FRANCISCO : Crude oil prices are likely to stabilise at the current US$30-40 a barrel and as such there is no need to make any more budget adjustments, Prime Minister Datuk Seri Najib Razak said.
But should prices dip below US$30, then the government may re-look at its fiscal position, Najib told reporters covering his US trip to California.
Najib had in January recalibrated the 2016 Budget, taking into account the sharp drop of world oil prices.
As such, the government revised the budget assumption price to between US$30 and US$35 per barrel from US$48.
“It looks like oil prices are going to likely stabilise between US$30 and US$40 per barrel, in the mid-US$30 for a while,” he said. “If that happens, that’s within the range of our recalibration of the budget, so it isn’t necessary for us to make any more adjustments.
“If it falls below US$30, then the government will re-look at our fiscal position,” said Najib, who is also finance minister. Saudi Arabia and other OPEC producers have refused to reduce output in an attempt to drive less competitive players, in particular US shale oil producers, out of the market.
But in the first sign of OPEC and non-cartel