The decrease of West Texas Intermediate (WTI) oil price, to around US$50, represents its lowest level registered (46.5%), if compared to last year, which will benefit productive key sectors in Peru, said the Lima Chamber of Commerce's (CCL) Institute of Economy and Entrepreneurial Development (IEDEP).
This could turn into a “favorable sign” for productive key sectors in Peru, claimed Cesar Peñaranda Executive Director of the IEDEP.
“Oil has an important share, when it comes to every company’s costs," the executive director said.
"In the Peruvian case, the decrease will benefit the industrial, mining and construction sectors, which -as a whole- make up 36% of Peru’s GDP,” he explained.
The drop would also put the country in the inflation’s target range set at 2.7% for 2015, he calculated.
In this sense, IEDEP indicated an improvement in the purchasing power could lead to boost private consumption.
By decreasing oil prices and its by-products, consumers’ income is expected to increase.
By dropping prices of oil and its by-products, which –in the last 4 years amounted an average US$6 billion, the commercial deficit could be reduced. Currently, it is calculated to reach US$1.622 billion by the end of 2015.
However, the price decrease could also lead to less investments being conducted in the exploration sector, which could be postponed.