Economist: Oil surge not good

He said that with the country in recession a lot of fiscal changes had been made in the last year or so and the Prime Minister had even spoken recently about the need to reduce the dependency syndrome and the “gimme gimme” mentality.

“Therefore, if the price of oil were to suddenly surge by some act of God to US$80 a barrel, there is the probability and the possibility that we may reverse some of the decisions that were made.” Dr Hosein was speaking with journalists after delivering the keynote address at a function at the TSTT Hospitality Box at the Queen’s Park Oval, Tragarete Road, Port of Spain, to launch Global Entrepreneurship Week Trinidad and Tobago.

He added that, “A lowered price of oil offers the possibility and the interventionary opportunity to change some of our ‘gimme gimme’ mentality and ‘gimme gimme’ habits and I would not like to see all the positive efforts we have made become eroded because of a price change.” Oil prices have been rising of late following a decision last month by the Organisation of Petroleum Exporting Countries (OPEC) to cut oil production.

The members of the cartel are scheduled to meet in Vienna, Austria, on November 30, 2016 to ratify the decision and decide by how much to cut their output but the group’s second largest producer, Iraq, said on Monday that it would not go along with the production cut because it needed more money to fight against militants of the so-called Islamic State (ISIS). That announcement caused oil prices for Brent crude oil, the international benchmark crude, to slump on world markets to US$51.18 a barrel. The benchmark for the crude produced by this country is West Texas Intermediate Crude Oil which ended the trading day yesterday at U.S $49.30.

For one week every year in November, thousands of events and competitions are held in 160 countries, inspiring millions to engage in entrepreneurial activity while making connections with potential collaborators, mentors and investors. The event is organised and driven by the Kauffman Foundation, and is supported by dozens of world leaders and a network of more than 15,000 partner organisations.