Dear Editor,
I’m truly excited that the price of oil is now below US$40 per barrel on the global market, and hope it will remain that way in the foreseeable future. I was always of the opinion that this commodity was too expensive, especially for Third World and developing countries such as Jamaica which saw their unsustainable energy bill climb over the years, causing a lot of hardships and dislocation.
I believe the recent statement coming from the Bank of Jamaica that oil prices will rise in early 2016 is flawed and has no merit. Wall Street analysts have indicated the opposite is much more accurate.
Global oil prices are determined largely based on supply and demand, and not speculation. If there was peace in the Middle East, the world would be ‘swimming in’ oil.
Here are a couple of reasons oil prices will remain stagnant in the foreseeable future. The United States was the Organization of Petroleum Exporting Countries’ (OPEC) biggest customer, and is now self-sufficient as the world’s largest producer of oil and natural gas in its own right. The world, including the two largest economies — United States and China — is heavily invested in renewable energy. And when the sanctions are lifted against Iran oil prices will be further depressed. A steep increase in the price of oil will benefit ISIS, Iran and Russia, and I don’t think the world wants to see that happen any time soon.
No tears should be shed for OPEC and the other oil producers. They had a terrific run. And as I said before, years ago when the price of oil was at US$35 per barrel they were making money.
Although conserving energy should be paramount, I’m afraid that the savings in not being passed on to the consumers. For example, it is very refreshing to see gasoline at US$2 per gallon here in the US; something I thought would never happen in my lifetime. In the meantime, developing countries which are given a reprieve on energy prices should take advantage of the savings and put their economy in order for the benefit of their respective countries.
Noel Mitchell
Westchester, New York
nlmworld@yahoo.com
I’m truly excited that the price of oil is now below US$40 per barrel on the global market, and hope it will remain that way in the foreseeable future. I was always of the opinion that this commodity was too expensive, especially for Third World and developing countries such as Jamaica which saw their unsustainable energy bill climb over the years, causing a lot of hardships and dislocation.
I believe the recent statement coming from the Bank of Jamaica that oil prices will rise in early 2016 is flawed and has no merit. Wall Street analysts have indicated the opposite is much more accurate.
Global oil prices are determined largely based on supply and demand, and not speculation. If there was peace in the Middle East, the world would be ‘swimming in’ oil.
Here are a couple of reasons oil prices will remain stagnant in the foreseeable future. The United States was the Organization of Petroleum Exporting Countries’ (OPEC) biggest customer, and is now self-sufficient as the world’s largest producer of oil and natural gas in its own right. The world, including the two largest economies — United States and China — is heavily invested in renewable energy. And when the sanctions are lifted against Iran oil prices will be further depressed. A steep increase in the price of oil will benefit ISIS, Iran and Russia, and I don’t think the world wants to see that happen any time soon.
No tears should be shed for OPEC and the other oil producers. They had a terrific run. And as I said before, years ago when the price of oil was at US$35 per barrel they were making money.
Although conserving energy should be paramount, I’m afraid that the savings in not being passed on to the consumers. For example, it is very refreshing to see gasoline at US$2 per gallon here in the US; something I thought would never happen in my lifetime. In the meantime, developing countries which are given a reprieve on energy prices should take advantage of the savings and put their economy in order for the benefit of their respective countries.
Noel Mitchell
Westchester, New York
nlmworld@yahoo.com