CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : OCTOBER 2015 
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CARIBBEAN Petroleum Update A Publication of the Caribbean Energy Information System (CEIS)
Oc tober 2015 ISSUE
Falling Crude Oil Prices Explained: Are Retail Petroleum Prices in Jamaica moving in tandem?
The high cost of fuel has been historically sighted as a source of low economic growth performances in the Caribbean countries. With the continued downward trend in Crude oil prices, this is an opportunity for Caribbean governments to implement measures at the policy level to allow the economy to capitalize on these historic lows in global oil prices. The implication for net exporters and importers of oil, as well as retailers and consumers alike, is great and as such it is important to get an understanding of falling oil prices. In this issue, the Petroleum Update will examine why there has been a sustained drop in oil prices and to identify if there is a correlation with retail prices (if any) in Jamaica.
The assessment of falling crude oil prices can be looked at from two perspectives; a demand side and a supply side. From a historical perspective, specifically on the supply side, the United States in the early 2000s was a net energy importer (being the world’s largest economy). With the emergence of shale gas and developments in oil extraction this resulted in massive, unabated increases in oil production by US shale oil companies. As a consequence, the US have had sustained increases in oil production. In the same breath, OPEC (Organization of Petroleum Exporting Countries) also romped up oil production, largely in an effort to keep their market share due to the emergence continued on page 2/
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