Does the increase in OPEC production affect Colombia?

A reprimand via Twitter of Donald Trump President of the United States, was enough for the world's oil nations to set the task of avoiding the upward trend of the price of a barrel. "It seems that the OPEC (Organization of the Petroleum Exporting Countries) has done it again.The oil prices are artificially very high!", He said.

Since last week, OPEC has declared the increase in the production of barrels of oil to one million a day. The measure is widely supported to control the price of a barrel which, for Brent (reference for Colombia), has gone from an average annual value of 46 dollars in 2016 to 73.3 dollars in 2018 at the end of the year. yesterday

"Without doubt, an increase in the production of barrels will lower prices and that is why the accounts of countries, which support part of their economy in this material, can be affected by their objectives. final, "he assured. Luis Ernesto Mejía former Minister of Mines and Energy.

And although in principle the fall in the price of a barrel of oil is not significant and given the fact that the average cost last month was $ 74 per barrel, and in the five days that July has reached the figure of 76 dollars, what will happen now will be essential.

The government's accounts for 2018 were set by voting for a barrel that was going to quote at about $ 55, through the price moved, the Minister of Finance, Mauricio Cárdenas said in May this year that the rise of a barrel of oil is already taken for granted the contribution of 4 billion pesos in tax revenue for Colombia in 2019.

for Jose Roberto Acosta professor at the Universidad del Cesa, it is essential not to neglect what happened to the sector, as well as measures that encourage lower prices in the barrel of oil, a drop in demand for the product could end up seriously affect the expected benefits of the oil-producing countries.

"The cooling of the global economy and a drop in demand for the material, In addition to the fiscal imbalance and current account that the OPEC countries have, this leads them to sell more than oil, resulting in an increase in the product offering that eventually upset its selling price. It is decreasing the trend, perhaps not at historically low levels, but it is reducing the upward trend it has created, "adds the expert.

The medium-term fiscal framework presented by the Department of Finance realizes that the 2.7% growth outlook of the domestic product at the end of 2018, will be leveraged in the price of a barrel of oil Brent reference.

In an interview with EL COLOMBIANO May 7, the treasury portfolio manager warned that the country's economy planning, which remains for next year, will be based on a price in the barrel of Brent crude oil nearly $ 65.