Ghana may begin hedging oil imports under a new risk management strategy to keep fiscal consolidation on track as global crude prices recover.
That’s what the Reuters news agency is reporting its sources from Ghana’s Ministry of Finance tell it. Oil hedging is used to reduce or eliminate a country’s exposure to fluctuating oil prices.
It is also a contractual tool allowing a country to fix or cap an oil price at a certain level or period of time. Brent crude hit $71 a barrel last week the highest since 2014 before easing to $69.88 on Monday.
Ghana has largely been a net crude importer, except last year when oil exports exceeded imports by around $990 million according to the central bank .
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Source: Africafeeds.com / Fred Dzakpata
