H.E. Ambassador Constancio Pinto currently is the Minister for Commerce,Industry and Environment, prior to this post, Ambassador Pinto served as the Vice-Minister for Foreign Affairs and Cooperation and Vice-Minister of Commerce, Industry and Environment of Timor-Leste. He served as Ambassador of Timor-Leste to the United States of America ( Nov. 2009 - August 2012) and to Mexico and Canada from (2011-2012); a leader of Timorese Resistance and author of East Timor Unfinished Struggle.
THE oil price has fallen by more than 40% since June, when it was $115 a barrel. It is now below $70. This comes after nearly five years of stability. At a meeting in Vienna on November 27th the Organisation of Petroleum Exporting Countries, which controls nearly 40% of the world market, failed to reach agreement on production curbs, sending the price tumbling. Also hard hit are oil-exporting countries such as Russia (where the rouble has hit record lows), Nigeria, Iran and Venezuela. Why is the price of oil falling?
The oil price is partly determined by actual supply and demand, and partly by expectation. Demand for energy is closely related to economic activity. It also spikes in the winter in the northern hemisphere, and during summers in countries which use air conditioning. Supply can be affected by weather (which prevents tankers loading) and by geopolitical upsets. If producers think the price is staying high, they invest, which after a lag boosts supply. Similarly, low prices lead to an investment drought. OPEC’s decisions shape expectations: if it curbs supply sharply, it can send prices spiking. Saudi Arabia produces nearly 10m barrels a day—a third of the OPEC total.