Dear Editor,
Oil prices have been declining and will decline further as Venezuelan oil comes back online. The following chart shows a very concerning trend (14% price decline) for the past 6 months:
https://www.stabroeknews.com/images/2026/01/Oilpriceses1-1-copy.jpg[1]
Given the instability created by the arrest of Maduro, one can expect increased volatility across the globe. This will create tremendous uncertainty in global financial markets. It would be most prudent for Guyana to secure storage capacity for our oil as a safeguard against very low market prices. This is CRG’s second time making this recommendation and given the current circumstances, as a nation we can no longer afford to avoid the urgency of this need. We must also be extremely conservative in our 2026 budget and only pursue the necessities that we can afford without using any funds from the NRF.
CRG strongly recommends that the government immediately make the necessary adjustments to their planned spending for 2026 to cater for the increasing market risk exposure. Budget 2026 must be balanced so that expenses align with our non-oil revenue. During this period of increased global conflict, we must prepare for the worst and continue to hope for the best. The NRF must be treated as an emergency fund that will sustain our people over the long term. Given that a major war is now more imminent, it is time to save and minimize expenses.