IS GUYANA PROTECTED FROM MARKET MANIPULATION OF OIL?

May 02, 2018 Features / Columnists, Letters

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.

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