Singapore petrol prices drop 4 cents for third time in 2 weeks

This article belongs to the Singapore inflation watch story arc.

channelnewsasia.com, petrolwatch.com.sg :

Good news for motorists. Singapore petrol prices have fallen for the third time in two weeks. Shell cut prices on Monday [21 Jul 2008], and Caltex, Esso/Mobil and SPC also lowered their prices shortly after. They lowered prices for their petrol by 4 cents on average, and 2 cents for diesel. RON92 petrol is now selling at $2.133 per litre, RON95 at $2.166, and RON98 at $2.240. Diesel has slipped just below $2.00 and is now going for $1.993 per litre. Petrol pump prices have risen 14 times consecutively since July 2007, before falling on July 9 and again on July 17.

- Like I said earlier, enjoy the lower prices while they last. Chances are crude oil prices are at a local minimum, a short-term floor near $130 support, after the $10 fall that was triggered by all the demand destruction talk.

Even during the depths of the Great Depression, energy usage only went down about 8% overall. And the world's largest oilfields are depleting faster than that, with fields such as Mexico's Cantarell, formerly the world's second largest oilfield and now slipped to third place, seeing production decline by 18% in the past year. As I remarked to a colleague just now, it's a race to see if demand declines faster, or supply declines faster. I'm betting on the side of supply declining faster, and this being a short dip in demand which will turn out to be just a blip in the grand scheme on things. Crude oil support levels are $130, $120, $110 and $100, while resistance levels are $150, $180, $200, $300 and beyond.

So, enjoy the lower prices, while stocks last. Literally.

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