Illustrative image (Photo: Khmer Times) Phnom Penh (VNA) - A grim report on the world economy by theInternational Monetary Fund (IMF) announced on April 15 caused oil prices tocontinue to slide, with international prices hitting the lowest level since 2002as planned output cuts were deemed insufficient to offset a COVID-19-fuelledslump in demand.
On the day, the price on the West Texas Intermediate (abenchmark for the grade of crude oil used for oil pricing) dropped to 19.20 USDper barrel.
The IMF, in its report, forecast that oil prices will likelyremain below 43 USD per barrel from now until 2023 owing to persistently weakdemand in a deep global recession sparked by the COVID-19 pandemic.
“However the rapidly falling cost of oil, which greases thewheels of the global economy, will help consumers,” the IMF said.
The low prices are good news for Cambodian transport, farms, factories andprivate motorists who benefit from cheaper gasoline, but they do have a seriouseffect on the Ministry of Mines and Energy’s current plans for offshoreoilfield exploration.
This is especially true for the Singaporean-listed KrisEnergy that havecontinued plans for oil to be extracted from the Apsara oilfield, located inBlock A of the Khmer Basin in the Gulf of Thailand. The Apsara oilfield is setto become the first productive oilfield in the country.
Lim Solinn, Oxfam country director, previously told Khmer Times that theeconomic benefits of the operation would be substantial for the CambodianGovernment. However, with these newly revised current market conditions, theproject’s viable benefits are still uncertain./.
On the day, the price on the West Texas Intermediate (abenchmark for the grade of crude oil used for oil pricing) dropped to 19.20 USDper barrel.
The IMF, in its report, forecast that oil prices will likelyremain below 43 USD per barrel from now until 2023 owing to persistently weakdemand in a deep global recession sparked by the COVID-19 pandemic.
“However the rapidly falling cost of oil, which greases thewheels of the global economy, will help consumers,” the IMF said.
The low prices are good news for Cambodian transport, farms, factories andprivate motorists who benefit from cheaper gasoline, but they do have a seriouseffect on the Ministry of Mines and Energy’s current plans for offshoreoilfield exploration.
This is especially true for the Singaporean-listed KrisEnergy that havecontinued plans for oil to be extracted from the Apsara oilfield, located inBlock A of the Khmer Basin in the Gulf of Thailand. The Apsara oilfield is setto become the first productive oilfield in the country.
Lim Solinn, Oxfam country director, previously told Khmer Times that theeconomic benefits of the operation would be substantial for the CambodianGovernment. However, with these newly revised current market conditions, theproject’s viable benefits are still uncertain./.
VNA
