Minister of Energy and Energy Industries, Franklin Khan said the discussion around oil prices have been on the table for several months since the change in the global economy due to a domino effect caused by the Coronavirus.
Minister Khan spoke with IzzSo Media this evening, after news broke that the price of US oil turned negative for the first time in history.
This means oil producers are paying buyers to take the commodity off their hands over fears that storage capacity could run out in May.
Demand for oil has all but dried up as lock-downs across the world have kept people inside.
Minister Khan said in T&T’s case, while what’s happening globally is not a good sign, the country’s crude oil is a water base and priced to Brent Crude oil which he revealed will be shipped at a discount on the market.
Minister Khan said while today’s news comes as a shock to many, he is confident that it will not have any major effect on Trinidad and Tobago.
Meanwhile Minister Khan said that West Texas Intermediate oil (WTI) has been struggling to regain its strength on the market for several months.
The price of a barrel of West Texas Intermediate (WTI), the benchmark for US oil, fell as low as minus $37.63 a barrel.
He noted because of several ‘lock down’ measures both on land and air, worldwide and more so the United States, the demand for WTI crude has dwindled significantly.
He forecasts that the inventory in the United States will remain relevantly high.
When asked if the restrictions proclaimed by the T&T Government to combat the spread of COVID-19, has affected the local production of oil, Minister Khan said the country has not been affected.
However the country has been affected by price.
Press Play to hear what Minister Franklin Khan had to say –