Dear Editor,
Many are concerned that Guyana is not positioning itself for the best price for its oil. Recent price fluctuations have not been leveraged via hedging and futures contracts in the oil market. The $69 to $74 price range has been missed and the opportunity to take advantage of futures market prices above $60 should be placed under contract as soon as possible especially given the economic slowdown due to the coronavirus that is being forecasted. The beauty of the hedge is that we also have local consumption of oil that we can leverage in times of a soft market where low prices are present. Also the market is liquid enough for us to trade contracts easily and not be completely exposed to spot price fluctuations.
This approach not only holds true for our oil, but also holds true for our cane sugar. The market is up this year due to the shortage of beet and the percentage increase easily covers the wage demands of GAWU.
My experience at the graduate level helping others (executives included) understand managerial economics where the complexity of pricing is explored, would serve Guyana well during the next administration. If interested in my assistance please do not hesitate to contact me. I am always willing to help/cooperate with others to ensure the success of our local economy.
Yours faithfully,
Jamil Changlee
Chairman
The Cooperative Republicans of
Guyana