Gross sales of oil produced in Guyana would total about US$2.676 billion to US$3.21 billion over one month if Brent crude rises to US$100 – US$120 per barrel and production holds at 892,000 barrels per day.
This estimate is based on a price and volume calculation using 892,000 barrels per day multiplied by the Brent price and then multiplied by 30 days.
At US$100 per barrel, that equals about US$89.2 million per day, or roughly US$2.676 billion over 30 days. At US$120 per barrel, that equals about US$107.04 million per day, or roughly US$3.211 billion over 30 days.
Over three months, the same calculation implies roughly US$8.028 billion to US$9.634 billion in gross sales of oil produced in Guyana, using 90 days.
Earlier this week, JPMorgan analysts flagged the US$100 – US$120 scenario in a research note to clients reported by Barron’s on March 2, as oil markets reacted to escalating Middle East tensions and the risk of supply disruptions through the Strait of Hormuz.
“We estimate that if the conflict lasts more than three weeks, GCC [Gulf Cooperation Council] oil producers would exhaust storage capacity and would be forced to shut in production,” the JPMorgan analyst said, according to Barron’s. “Under this scenario, Brent could trade in the $100–$120 range.”
Barron’s reported Brent was trading near US$80 per barrel on March 2 after touching above US$82 intraday.
The gross sales figures reflect the value of oil produced in Guyana at the stated prices and do not represent the Government of Guyana’s share.
