BI Governor responds to plunge in world oil prices

BI Governor responds to plunge in world oil prices

Bank Indonesia (BI) Governor Perry Warjiyo (in the middle) attended the signing of the cooperation on competency standardization in the field of Payment and Management System of Rupiah held at the Ministry of Manpower and the National Professional Certification Agency (BNSP) in Jakarta, Monday (March 9, 2020). (ANTARA/Dewa Wiguna/yas)

This is an example of anti-globalization or the decline in the era of globalization that happens so fast
Jakarta (ANTARA) - Bank Indonesia (BI) Governor Perry Warjiyo has responded to the global oil prices that crashed, from US$60 to around $30 per barrel due to decline in the globalization era.

"This morning, we are surprised by an 'oil war' that resulted in the oil price dropping, from US$60 to US$30 (per barrel). This is an example of anti-globalization or the decline in the era of globalization that happens so fast," Warjiyo stated here on Monday.

He pointed out that the decline in the globalization era was earlier marked by the emergence of a trade war between the United States and China that was then followed by the outbreak of a new type of Coronavirus, or COVID-19.

Moreover, the world was confronted with rapid developments in digital technology that also resulted in economic disruption, he stated.

However, Warjiyo chose to not expound on the impact of the plummeting world oil prices that he termed as an "oil war".

The world oil prices decreased significantly over 20 percent, with the US West Texas Intermediate (WTI) and Brent Oil prices respectively falling to US$32.4 per barrel, or declining 21.5 percent, and US$35.31 per barrel, or plunging 22 percent.

The drop in world oil prices came after Russia desisted from participating in production cuts, followed by a drop in the selling prices by Saudi Arabia.

Russia has vehemently rejected proposals to reduce OPEC's steep production to stabilize prices since the Covid-19 outbreak has triggered a global economic slowdown and disrupted energy demand.

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