{"id":40444,"date":"2018-11-13T06:09:34","date_gmt":"2018-11-13T11:09:34","guid":{"rendered":"http:\/\/olduvai.ca\/?p=40444"},"modified":"2018-11-13T06:09:34","modified_gmt":"2018-11-13T11:09:34","slug":"former-malaysian-pm-warns-of-economic-crisis-if-brent-trades-below-70","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=40444","title":{"rendered":"Former Malaysian PM Warns Of “Economic Crisis” If Brent Trades Below $70"},"content":{"rendered":"
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Former Malaysian PM Warns Of “Economic Crisis” If Brent Trades Below $70<\/span><\/a><\/h3>\n<\/div>\n
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Najib Razak, the former prime minister of Malaysia, warned<\/a> that the country is headed for an economic collision of massive proportions should ICE Brent Crude contracts trade below $70<\/strong>.\u00a0As of Friday, Brent Crude contracts settled at 70.18, which he also warned that Moody’s decision to downgrade the country’s credit rating to negative could be imminent.<\/p>\n

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The former prime minister, who was previously arrested in July for involvement in the 1MDB scandal, explained in a Facebook post<\/a> that the recent bear market in oil would see the country’s deficit explode and the Malaysian ringgit continue to depreciate as the Federal Reserve signals further rate hikes.<\/p>\n

\u201cThe pressure on the government\u2019s fiscal position will double,\u201d <\/strong><\/em>Razak warned.<\/p><\/blockquote>\n

This, Razak said, the country would have to issue a higher dividend to cushion the shortfall in revenue for Petronas, the country’s national petroleum company.<\/p>\n

In doing so, he said that could severely impact Malaysia\u2019s credit rating for 2019.<\/p>\n

\u201cThis is when oil prices are said to be high and stable. But what if oil prices drop?… What buffer do we have to cushion an oil crisis, if it happens again?,” <\/strong>he questioned.<\/p><\/blockquote>\n

On Thursday, Moody\u2019s affirmed the A1 domestic issuer and foreign currency senior unsecured ratings of Petronas but altered its outlook from stable to negative.<\/p>\n

“The rating agency also affirmed the A1 rating for Petronas Capital Ltd\u2019s senior unsecured notes and the US$15 billion medium-term note (MTN) programme as well as sukuk issued through Petronas Global Sukuk Ltd, but changed its outlook to negative from stable.<\/p>\n

Moody\u2019s said the rating action was due to the government\u2019s announcement that Petronas would be paying RM26 billion in dividends in 2018 and RM54 billion (inclusive of a one-off special dividend of RM30 billion) in 2019,” Free Malaysia Today<\/a>.<\/p><\/blockquote>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Former Malaysian PM Warns Of “Economic Crisis” If Brent Trades Below $70 Najib Razak, the former prime minister of Malaysia, warned that the country is headed for an economic collision of massive proportions should ICE Brent Crude contracts trade below $70.\u00a0As of Friday, Brent Crude contracts settled at 70.18, which he also warned that Moody’s […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[91,239,1445,7382,592,1715,4318],"class_list":["post-40444","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-brent-crude","tag-economic-crisis","tag-malaysia","tag-moodys-rating-agency","tag-oil-price","tag-petronas","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40444","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40444"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40444\/revisions"}],"predecessor-version":[{"id":40445,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40444\/revisions\/40445"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}