Opposition Concerned About Higher Oil Prices

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Opposition Spokesperson on Energy, Phillip Pauwell, says Jamaicans will ‘suffer more’ from an expected increase in the price of oil.

This, as a result of the decision of the Organization of Petroleum Exporting Countries, Opec, to cut oil production.

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The oil cartel, Opec, has agreed its first supply cut in eight years in order to boost the price of oil.

Opec’s President says a cut of 1.2-million barrels a day would start from January.

This comes after more than two years of depressed oil prices, which have more than halved since 2014, due to a supply glut on the market.

Mr. Paulwell says with the imminent cut in oil production, Jamaica end up purchasing crude oil for as much as 60 US dollars per barrel.

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But he says the Petrocaribe Agreement with Venezuela will help to cushion the impact of a drastic oil increase.

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He says he’s awaiting the government’s decision on whether it’s going to consider another oil hedge.

Energy Minister, Dr. Andrew Wheatley, yesterday told Nationwide News that the government will carry out a thorough analysis on that option, before taking any such a step.

He says they’ll be monitoring the expected movement in the price of oil, saying volatility in the oil market will be of concern.

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In 2018, Tauna won the UNICEF Media Award for Excellence in Reporting on Children’s Rights. She graduated from CARIMAC in 2015 and joined NNN in 2016. Since then, she’s covered several high-profile court cases including the X6 murder trial, the police death squad trial and is currently covering the Uchence Wilson Gang trial. Thomas is the Producer of Talking History heard on Nationwide Radio every Saturday.