Global Oil Prices on the Decline. Local prices should head back down soon
- Published in Soualiga
- font size decrease font size increase font size
Copyright Nengredeye Shutterstock
PHILIPSBURG – Industry analyst Trilby Lundberg said on March 22 that falling oil prices and strong production at United States refineries has led to lower numbers at gas pumps in the U.S. This decline has been over a two week period since mid-March.
Global supplies continue to build while weak demand from major economic sectors remain in place, and this spells good news for Caribbean countries that are mainly dependent on fossil fuels for energy needs with the exception of Trinidad & Tobago.
More than two weeks ago, oil prices started to track upward and this resulted in three increases in gas pump prices. Consumers should see a publication from the Ministry of Tourism & Economic Affairs soon announcing gas pump prices heading back down.
The International Energy Agency called a recent rise in oil prices a “head fake” and a “façade of stability.”
The agency wrote in its monthly oil market report: “The rebalancing (of supply and demand) triggered by the price collapse has yet to run its course.”
Some analyst say the price of oil could fall sharply to under US$40 a barrel and even down to US$20 if oil supplies at storage depots around the world continue to grow in the coming months.
SOUALIGA NEWSDAY REPORT