[miningmx.com] – THE lower oil price might give companies operating in Africa a boost but it was unlikely to stay at its current levels, probably settling at $80 per barrel later this year, said Reuters citing Gold Fields CEO, Nick Holland.
“I think if it prevails at these levels for another 12 months we’ll start seeing the benefits flowing through,’ said Holland. “We looked to try and hedge the oil price in Ghana because we use 100 million litres a year in our operations there,’ he said.
“When oil was at spot $45 a barrel we tried to hedge it and the forward price was in the 70s. I think a lot of the market participants are discounting higher oil prices,’ he said, adding that Gold Fields’ view was that oil would settle at around $80/barrel.
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