T&T warned: Budget for lower oil prices

Published: Friday July 11, 2008

Global oil prices have fallen by at least US$10 per barrel in the last three days.

And economists and energy analysts are saying this is a indication that as the global economy slows down, people are becoming more environmentally aware and are trying to save on fuel usage. As a result the demand for oil will also decrease and energy prices will be lowered.

Countries which rely heavily on oil and gas profits (like Trinidad and Tobago) are being warned that they need to budget their current windfall profits wisely while prices are still extremely high.

Anthony Paul, energy consultant and strategist, said: "There is a slowing down of the world economy and it will affect energy prices and therefore Trinidad and Tobago."

However, he said even with lower prices (than last week's record estimate of US$147) the country is still getting more than what was budgeted for, therefore, the question is not so much about the US$10 decrease but more about what the country chooses to do with the revenues which they are still receiving.

He said there is a need for more feedback on the amount of revenues being saved in the Heritage and Stabilisation Fund. He said the lack of regular reporting on the fund is a matter for concern.


Source: Trinidad Express Newspapers
http://www.trinidadexpress.com/index.pl/article_business?id=161350866