Caribbean Weather

Wednesday, May 06, 2020

BPL seeking to take advantage of low crude oil prices

The headquarters of the Bahamas Power and Light on Baillou Hill Road. FILE

Bahamas Power and Light (BPL) stated yesterday it intends to take advantage of the low crude oil prices that have emerged as a result of the global COVID-19 pandemic.

With West Texas Intermediate (WTI) crude oil falling to its lowest level – at just above $10 a barrel last month, its lowest price in 30 years – international bodies have urged oil importing nations like The Bahamas to stockpile while the getting is good.

In a statement to Guardian Business, BPL emphasized its intent to pursue hedging in regard to its fuel supply.

“It is imperative, per our strategic plan, that we employ this tool to help us achieve price stability. Therefore, we have very nearly completed the internal processes that would allow us to begin hedging,” the statement noted.

BPL Chief Executive Officer Whitney Heastie said there are some final steps that remain in the corporation’s efforts.

“As you can imagine, we are being extremely cautious in this moment to be certain we are moving in the right direction at the right time. However, I can confirm that we are still moving definitively in that direction,” he said.

Central Bank of The Bahamas Governor John Rolle recently said that securing lower fuel costs is an area in which the government can plan ahead to generate savings.

“The expenditures on oil represent the largest single import item for The Bahamas, so we’ve certainly been advocating that The Bahamas take some steps to secure some of the lower oil prices,” he said.

“And we are aware that Bahamas Power and Light is looking at those opportunities and we support those efforts.”

Yesterday, WTI crude oil stood at $24.54, with futures expected to rise 20 percent this month.

The post BPL seeking to take advantage of low crude oil prices appeared first on The Nassau Guardian.



source https://thenassauguardian.com/2020/05/06/bpl-seeking-to-take-advantage-of-low-crude-oil-prices/

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