The finance ministry had prepared next year’s budget based on the crude oil price of US$70 per barrel.

Lim said there was no need to recalibrate the budget now as the government was looking at average crude oil prices and not daily prices.

“Previously, when oil prices rose from US$52 per barrel to US$72 per barrel, we did not recalibrate the budget, so similarly it had gone down from US$72 per barrel to US$52 per barrel now.

“We will only consider recalibrating the budget if average crude oil price dips below US$50 per barrel,” he said after flagging off the “Occupy Beach Street Christmas Run” here today.

However, Lim, who is also the Bagan MP, said the market was quite volatile now although analysts were positive that average crude oil prices could reach US$70 per barrel.

“You know nowadays, Donald Trump (United States president) says something and it will affect the price (of crude oil).

“For the time being, as long as average prices are still above US$50 per barrel, there is no need to recalibrate but we will continue to monitor prices and see how (prices move) next year,” he added.

Oil prices crashed to new one-year lows last Tuesday, erasing between 4% and 7% throughout last week, dragged down by a deepening sense of global economic gloom, as well as, fears of an oversupply in the oil market itself.

West Texas Intermediate (WTI) dropped below US$47 per barrel and Brent fell to the US$56 level.

The reasons for the sudden meltdown were multiple.

Rising crude oil inventories and expected increases in shale production were weighing on oil prices but the price crash was accentuated by the broader sell-off in financials.