Home' Trinidad and Tobago Guardian : January 14th 2015 Contents ABU DHABI, United Arab Emirates---
The energy minister for the United Arab
Emirates said Tuesday there are no plans for
Opec to curb production to shore up falling
crude prices, and instead put the onus on
shale oil drillers for oversupplying the
Oil prices have lost well over half their
value since late June, with benchmark US
crude trading below US$45 a barrel.
Opec, which includes the Emirates, decided
at its last meeting in November to keep
production levels unchanged, despite calls
from some from within the 12-member bloc
to curb output to boost prices. The position
of the cartel's Arab Gulf producers is that
scaling back production would only erode
their market share and benefit rivals, such as
shale drillers in the US.
"I think the strategy will not change,"
Emirati Energy Minister Suhail Bin
Mohammed al-Mazroui told the Gulf
Intelligence energy conference in Abu Dhabi.
"By not panicking and readjusting or
cutting the output from the Opec countries,
we are telling the market and the other
producers that they need to be rational. They
need to be like Opec," he said. "They need to
look at growth in the international market
for oil and they need to cater the additional
production for that growth." (AP)
A A 14,
• Twitter: @GuardianTT • Web: guardian.co.tt
A A - A
Government s divestment of state assets is
the equivalent of a "fire sale" which they are
using to fund fiscal deficits, Opposition Leader
Dr Keith Rowley said yesterday.
"We are being told that this will be a climate
of divestment where the Government will make
up the shortfall in revenue be selling state assets.
It is one thing to have a divestment programme
as we had before this decline, it is another thing
to have a fire sale to fund the deficit. When you
begin to sell your car and garage and furniture
to pay your lifestyle bills, by the time you sell
the house, you will be in vagrant status. That
is where the country is now, trying to sell our
crown jewels to meet fiscal shortfalls," he said
in the keynote address at a business breakfast
meeting hosted by the Tunapuna/Piarco Regional
Corporation at the Millennium Golf Course,
Rowley said the FCB IPO fiasco and irregu-
larities left people with a lack of confidence in
Government s ability to "honestly divest state
"On that background we are saying we will
not support any further divestment until there
is closure from FCB," he said.
The Opposition Leader said because of the
irresponsibility of the Government, it is unpre-
pared for the shortfall in revenue from the collapse
of oil prices.
"As of today we are experiencing the largest
drop of oil prices in the history of the monitoring
of oil prices. Oil is now US$44 and going down.
That is down from US$107 not too long ago. We
had a budget in September and it is now January.
This is a very serious change and we have to
face up to it. This is not a temporary blip as
some may believe and we must respond in a
responsible way," he said.
Rowley said after oil prices went down in 2009
and the then government reacted effectively to
the situation but when oil prices went back up
and a new government took office in 2010, they
acted irresponsibly with the higher oil prices.
"The five budgets after that were the five
largest budgets in the history of T&T and there
was total fiscal irresponsibility on the basis that
God is a Trini and when God did not tell us that,
we told ourselves that. From 2010 to 2014, every
budget was a record larger than the one before.
Even in the face of the dramatic collapse we are
being told all is well and nothing will change,"
Rowley said changes in the rules of the Central
Bank caused foreign exchange problems last year.
"The Central Bank Governor changed the for-
eign exchange allocation. Persons who did not
have a client base were given equal access to
foreign exchange. Those people now have access
to foreign exchange in the same way as the bank
with foreign exchange. Arising out of that these
people can buy foreign exchange and keep it for
themselves and the Central Bank Governor is
now accusing them of hoarding foreign exchange.
"That was not happening before. For 15 years
there was confidence in the distribution system.
Now the government inflow of foreign exchange
is expected to be reduced significantly. This year
it will be more of the same and further disruption
in the confidence," he said.
Rowley: Fire sale to fund deficit
l y, , , ,
/ l C y ll
y y' , ' l B , y B ,
ll l C , y. PHOTO: SEAN NERO
UAE minister: No change in Opec policy
Links Archive January 13th 2015 January 15th 2015 Navigation Previous Page Next Page