Fuel prices at the pumps in May 2015.
Excess inventories said to be near the 97-year high reached in April and increased drilling has pushed the price down to US$40 per barrel on Monday. Technical indicators point to a fall to the low, between US$35 to US$30, before too long.
Increased drilling and the rise in supplies will add more downward pressure on prices going forward, it will take a very long time for inventories to normalize. Added to this, is the pressure that investors have placed on prices, as they continue to sell oil short, at an increasing pace.
For every US$1 fall in the price, Jamaica will save approximately US$9 million per year. The fall back of oil prices will result in lower electricity and transportation cost for the majority of the region and boost companies profits.
