South Sudan: War-Torn South Sudan Under Economic Attack from Fall in Oil Price

Dec 21, 2014 | Javier Blas and Katrina Mansion, Financial Times
View Original

War-torn South Sudan is receiving what traders say is arguably the lowest oil price in the world, $20-$25 a barrel, because of falling prices and unfavourable pipeline contracts.

Poverty-stricken South Sudan , which became independent in 2011 and is battling a year-long civil war, could become one of the biggest victims of the oil crunch after the Opec cartel decided to battle the US shale oil boom by maintaining production levels, driving down prices. Brent crude, the North Sea benchmark, closed at $61.38 on Friday.

Oil companies in some new shale regions in the US and the tar sands in Canada are also realising prices significantly below international benchmarks because of a lack of pipeline or rail capacity to transport their production. But traders said none were making as little as South Sudan.