Latest update December 25th, 2024 1:10 AM
Latest News
- Guyanese losing millions from Govt. and Opposition’s failure to to manage oil sector
- ‘Guyana’s Stabroek Block success is like a Michelin Star Restaurant’ – Exxon official
- Gaza appeals for help as Israeli army attacks key hospitals
- Face the Press, Mr. President!
- State makes application to revoke Brutus’ bail
IS GUYANA PROTECTED FROM MARKET MANIPULATION OF OIL?
Editor,
What protection is in place for Guyana to protect Guyana from market manipulation of oil? Many concerned Guyanese and others have given valuable reasons criticizing the one-sided oil contract that was put into place by the current administration without consulting the citizens of this country.
Having not seen this one I will add this reason to the list. This is how it works. Company X or Country S who controls a large supply of oil will instruct their financial brokers to sell short oil or buy put options on oil, meaning they bet on the price of oil to drop, they will then increase the supply and oil price would drop and they rake in the money.
They will then bet on the price to rise and reduce supply so price will rise and they would again rake in the money. Meanwhile oil producing countries that have no idea this is going on will be losing in many different ways.
Example Company X will tell Country G “the recent drop and rise in oil price offset so you have nothing to get”. Meanwhile they made money twice.
Yours Truly
Concerned Guyanese.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Merry Christmas, Ya Filthy Animals!
Peeping Tom… Kaieteur News- Ah, Christmas—the season of goodwill, good cheer, and, let’s not forget, good riddance!... more
Breaking the Chains of Poverty: A need for political will
By Sir Ronald Sanders Kaieteur News- The year 2024 has underscored a grim reality: poverty continues to be an unyielding... more
Weekend Cartoon
