Airlines, transport firms main losers in oil price hike

Airlines, transport operators and manufacturers will be the hardest hit by the surging crude oil prices which saw the futures hitting record levels of above US$80 (RM294) per barrel on July 14.

CIMB Investment Research estimates that every US$10 per barrel increase in oil prices trims 0.7 percentage point off Malaysia’s gross domestic product growth because of the resulting slowdown in global economic growth.

Although certain sectors will gain from the higher oil prices, it said the winners, however, were overwhelmed by sectors such as transport, cement, power, consumer, tolling and motor as they felt the pain.
The Edge Daily