Capital Economics: Asia Is More Vulnerable to the Impact of Long-term High Oil Prices

Golden Ten Data reported on March 23 that Gareth Leather, an analyst at Capital Economics, pointed out in a report that compared to other regions, Asia's reliance on imported energy makes it more vulnerable to prolonged periods of high oil prices. Historically, about 80% to 90% of the energy flow transported through the Strait of Hormuz has been destined for Asian markets. Asia has already experienced increases in crude oil and refined product prices; since the start of the war, the benchmark price for diesel in Singapore has risen by about 140% (UTC+8). Sri Lanka, the Philippines, and Pakistan will be hit the hardest, as they heavily rely on energy imports from the Middle East and have limited fiscal space to cushion this impact.