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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