Every dollar that oil goes up will cost the country US $ 64 million
Iran's supreme leader, Ayatollah Ali Khamenei, greets the head of the Iranian Revolutionary Guards Corps, Lieutenant General and Commander of the Quds Force, Qasem Soleimani, during a ceremony in Tehran, Iran.
For the economist Henry Hebrard the rise in the price of crude oil is bad news starting the year, since unlike 2019 when the price was at US $ 45, today there is talk of an increase of US $ 4 above the US $ 59.10 contemplated in the 2020 budget.
For every dollar, the oil price goes up “the impact is US $ 64 million, which means RD $ 3.3 billion or RD $ 13 billion additional in the oil bill, just for those four dollars,” Hebrard said adding the increases they feel in fuels and inflation and brings a complication in government accounts due to the increase in the subsidy to the electricity sector. Despite the complexity of the external sector, Hebrard believes that there are two elements that will help and it is the entrance of Punta Catalina and the end of the drought and the arrival of rains that feed the hydroelectric plants.
Collado asks to be attentive
Miguel Collado Di Franco is more optimistic and suggests keeping an eye on the market, being vigilant and being cautious. For the economist, it is necessary to wait and see how this situation unfolds. Remember that last year there was a bombing in Saudi Arabia and therefore you have to see the real fundamentals, since there is an important supply of crude oil and there is more technology, with low demand.