Trinidad oil prices drop dramatically

Trinidad and Tobago’s economy has been hit by the oil price crash.

University of the West Indies economist Dr Roger Hosein said the Government must immediately implement a contingency meeting and develop a “plan B” to deal with the financial crisis.

It also must bring forward the mid-term review of the economy.

“I think they will have to do an entire re-look of transfers and subsidies to see if they can shave a further $7 billion from it. I think they will have to look at the Heritage and Stabilisation Fund if the crisis continues for some fiscal support for the fiscal gap that will emerge,” he said.

Hosein said Trinidad and Tobago should be worried because this plunge in prices will be a blow to revenue streams. The coronavirus outbreak plus the Saudi Arabia/Russia oil price war could take prices as low as US$20 a barrel, he predicted.