13 May 2018 "Jamaica could be heading for choppy waters, potentially facing a challenging combination of rising oil prices but no oil price hedge and no 1 Oct 2015 These assessments, he indicated, “pointed to sharp increases in crude oil prices, particularly towards the latter half of 2015,” adding that 3 Mar 2020 The hedge, therefore, only covered at most 33% of Jamaica's oil After the spending of $3.3 billion on oil hedges by the Portia Simpson Miller 4 Feb 2019 in 2013.9 Also, Jamaica bought call options to hedge oil imports from June 2015 to. December 2016; the hedging programme covered a total of 2 Aug 2018 With Jamaicans paying weekly record high prices for gasoline and other petroleum products, Opposition Spokesman on Energy, Phillip 26 Jun 2019 North Africa's largest economy plans to hedge against rising oil prices in the fiscal year 2019-2020 that starts in July, following a similar effort to
4 Feb 2019 in 2013.9 Also, Jamaica bought call options to hedge oil imports from June 2015 to. December 2016; the hedging programme covered a total of
The ESEEEF aims to provide the resources needed to better position the Administration to undertake projects over the medium to long term that will reduce Jamaica’s dependence on oil imports and undertake the hedge programme. These, as part of measures to cushion the country against the impact of possible global oil price shocks. According to the respected British publication, the Financial Times, it’s rare for oil-consuming nations like Jamaica to hedge their oil exposure. Typically, airlines or oil-producing countries like Mexico, through the state-owned oil company Pemex, would use derivatives to manage their price risk. Jamaica's first hedge contract, which it purchased from counterparty Citibank NA, provides coverage for eight million barrels of crude oil imports over 18 months between June 2015 and December 2016 at an average strike price of US$66.53 per barrel. In June 2015, the Government of Jamaica booked a hedge transaction to buy six million barrels of oil for delivery 15 months later at a strike price of US$66.74. The mechanism used in this kind of transaction is called a ‘call option’, which gives the purchaser of the option the right, but not the obligation, to purchase the asset at a specified price the ‘strike price’ within a specified time.
The names attributed to the management entities may include central banks, official investment companies, state pension funds, sovereign oil funds, among
Although the Bank of Jamaica, which was overseeing the hedging programme, had been exploring the purchase of new oil contracts in late 2016, nothing came of those plans. "The Government of Jamaica does not currently have oil hedge agreements in place," said Audrey McKenzie on behalf of the financial secretary of the finance ministry back in March.
26 Feb 1993 Background to Biodiversity and Ecosystems in Jamaica . Oil dependency as a percentage of total energy production. 95%. 17. NATURAL 2010,Blair Hedges – Caribherp.org;(12) idem; (13) SOE 2010;. (14) SOE 2010 and
23 Jun 2015 Jamaica hedges against higher oil price. Derivatives contracts rare for oil- importing nation but Wall Street is urging others to follow suit. 4 May 2018 Cloaking itself within the law, the Ministry of Finance dodged questions regarding a controversial tax that was introduced to pay for oil hedging 13 May 2018 "Jamaica could be heading for choppy waters, potentially facing a challenging combination of rising oil prices but no oil price hedge and no 1 Oct 2015 These assessments, he indicated, “pointed to sharp increases in crude oil prices, particularly towards the latter half of 2015,” adding that
The oil hedge was sold to Jamaicans as something to save us from high oil prices in totality, not one-third! This was a PNP three-card trick. Now let's put this into perspective. Jamaica imported
If your company is exposed to oil price fluctuations, oil hedging is a tool that can help to eliminate the risk of your fuel budget getting out of control. We work out a
Jamaica Losing from Hedging Oil Prices - Nationwide 90FM The government is likely to lose more than USD$20-million that it bet on oil prices last year. The government had hedged the money, in an attempt to lock in oil prices at USD$66 a barrel for 15 months if prices rose above that level But oil prices have since plummeted below USD$30 a barrel. It’s uncertain whether the government will enter into another agreement to hedge oil. It’s done to protect the country from dramatic increases in the price of oil on the world market. Yesterday, Bank of Jamaica Governor Brian Wynter and Financial Secretary Everton McFarlane defended the need for another hedge. Jamaica consumed approximately 24 million barrels of oil over the 18 month period covered by the hedge 2. The hedge, therefore, only covered at most 33% of Jamaica's oil imports, over the period of the hedge. Dear Editor, To protect the fragile economic progress the country has made in the past few years (under both parties) the Government should immediately seek a favourable hedge on the price for oil.