crude oil imports

Crude price collapses

April 20, 2020 by IC Insider.com

Energy traders bailed out of the expiring May U.S. oil futures contract in a frenzy on Monday, as the contract dropped by more than 70 percent to less than $5 a barrel and opening the widest gap ever between it and the next contract with storage rapidly filling, Reuters reported around midday Jamaica time.

Oil drilling offshore Guyana

The price of West Texas crude that plunged 45 percent to the lowest level in decades with the price hitting US$10.85 this morning plunged further in late morning trading to hit US$5.
On Thursday, the price dipped to close on the world market at US$19.73 from over US$62 in December last year. The fall takes place even as major oil producers agreed to cut production by nearly 10 million barrels a day, effective May.
The news is terrible for oil-producing countries and a huge gift to net importers of the commodity. In the Caribbean, Trinidad and Tobago and Guyana net exporters of the product will be negatively affected, but net importers in the rest of the Caribbean will enjoy a windfall should the low price persist. Jamaica will find the plunge a great gift as it will play a huge role in offsetting the fall in revenues from the tourist trade as at the current price the country would save around one billion per year.
For consumers, the drop means lower fuel prices, electricity charges but the government will see less advalorum taxes on petrol collected.

Filed Under: Economy Tagged With: Crude oil, crude oil imports, Reuters

Crude oil plunged 45% Monday

April 20, 2020 by IC Insider.com

The price of West Texas crude has plunged 45 percent to the lowest level in decades, with the price hitting US$10.85.

Imports of fuel fell in 2016

On Thursday, the price dipped to close on the world market at US$19.73 from over US$62 in December last year. The fall takes place even as major oil producers agreed to cut production by nearly 10 million barrels a day, effective May.
The news is terrible for oil-producing countries but a tremendous gift to net importers of the commodity. In the Caribbean, Trinidad and Tobago and Guyana net exporters of the product will be negatively affected, net importers in the rest of the Caribbean will enjoy a windfall should the low price persist. Jamaica will find the plunge a great gift as it will play a huge role in offsetting the fall in revenues from the tourist trade as at the current price, the country would save around one billion per year.
For consumers, the drop means lower fuel prices, electricity charges, but the government will see less advalorem taxes on petrol collected.

Filed Under: Breaking News, Economy Tagged With: Crude oil, crude oil imports, West Texas Crude

Trade balance maintains improvement to May

August 31, 2014 by IC Insider.com

Jamaica’s trade deficit narrowed between January and May this year, compared to the same period in 2013 by US$125 to US$1.78 billion. For the same period last year, the trade deficit narrowed by just US$36 million.
The 2014 improvement emanated from imports of US$2.4 billion, a decrease of US$224 million or 8.5 percent and exports of US$616 million, down from US$715 million for the comparable 2013 period. The value of exports fell by US$99 million or 13.9 percent. Decline in fuel, food and beverage imports accounted for the bulk of the decline and alumina exports accounted for 14 percent of the export decline and non-traditional exports the rest.
Imports| Mineral Fuels import amounted to US$856 million, compared to the US$966 million for the January to May 2013 period. Imports of Raw Materials and Intermediate Goods fell to US$1.45 billion, a decrease of US$265 million or 15.4 percent. Imports of Other Fuel and Lubricants with the US$513 million was lower than the US$576 million recorded for the similar period of 2013, with a decline of US$63 million or 11 percent. Crude Oil imports at US$342 million, moved from US$389 million in the similar period of 2013, a fall of US$47 million or 12 percent.
Industrial supplies declined by US$146 million to US$350 million and Food and Beverages fell from US$146 million in the 2013 period to US$129 million. Capital Goods excluding Motor Cars increased moving from US$203 million to US$218 million in the current January to May 2014 period. Machinery and Equipment was the main contributor to the increase in this group moving up by 18.4 percent to US$121 million.
Traditional exports declined by 4.7 percent to US$327 million for review period versus the previous 2013 period due mainly to a decline in Alumina of US$13.5 million. Non-traditional exports decreased during the January to May 2014 by US$81 million or 23.7 percent to US$259.9 million. Statistical Institute of Jamaica (Statin) who compiled the data did not state which item accounted for the largest portion of the decline. Previous information indicate that export of ethanol fell sharply due to low demand in the USA market for the product.