The British Telegraph
reported on an interview with Colombian finance minister Mauricio Cárdenas. He
told the paper that the Colombian government is not counting on oil prices
returning to their previous high of $115 per barrel any time soon, adding, “We're
making everything that is necessary to adjust in a small and gradual way to
prices between $60 and $70.” This urgent and prudent action is a welcome sign
that Colombia will hopefully be able to weather this oil crisis and emerge with
a stronger, more diversified economy. Minister Cardenas pointed out that, at
this stage, higher interest rates in the U.S. would be even more damaging for
Colombia’s economy than sustained low oil prices.
El
Espectador, one of the leading Colombian dailies, published an article over
the weekend that tentatively asked the question whether the recent rally in oil
prices could signal a broader recovery for the sector. Ultimately, the report
concluded that due to structural factors in the oil industry, primarily OPEC’s
decision not to cut production, oil prices for the next year will likely end up
between 60 and 75 dollars per barrel.
On Friday, the Colombian and Peruvian mining ministries announced
a bilateral program of cooperation in the areas of gold, silver, and copper
mining. The two countries will work together and share best practices on issues
like formalizing miners, encouraging investment, and the resolution of social
conflicts. Colombia and Peru are battling many of the same issues and concerns
in regards to their mining industries, so this initiative is a positive sign
that they can share successful case studies and improve the efforts of both
countries.
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