Oil Price

Oil price recovery will help LNG price

The recovery in oil prices would see major impacts on PNG’s economy with increased revenue from oil and liquefied natural gas (LNG) sales.

The fall in oil prices has been a double blow for PNG, with revenue from petroleum production suffering as well as LNG from the PNG LNG Project.

According to the International Monetary Fund (IMF), LNG prices are directly linked to oil prices and any change in the latter affects the former.

OPEC deal could benefit PNG oil

Oil prices immediately went up by 10 percent to around $50 per barrel following an agreement between member economies of the Organization of the Petroleum Exporting Countries (OPEC).

The agreement, signed in Vienna on November 2nd, will see output cut by around 1.2 million barrels of oil per day from January.

OPEC heavyweights, Saudi Arabia, Iran and Iraq, which are the group’s three largest producers, signed the agreement, effectively stopping market forces setting the price, which was agreed two years prior.