Falling crude prices to hit Yemen's economy

New Delhi, Jan 16 (UNI) Falling crude oil prices is bad news for the tiny middle-eastern country of Yemen, as it may hit its economy which relies heavily on oil.

Minister for Oil and Minerals, Khalid Mahfoudh Bahah said if prices of Brent crude oil goes down sub 55 dollars a barrel, its economy will be affected.

''We have made plans for this year at 55 dollars a barrel, and if Brent prices fall below 55 dollars it will impact our economy,'' Mr Bahah said on the sidelines of the Petrotech conference here.

Stating that the current Brent prices at around 52.60 dollars were comfortable, he said he expects them to be between 55 dollars and 60 dollars a barrel.

''Seventy-five per cent of our economy relies on oil, so an increase in prices is in favour of our country and economy,'' he said.

Yemen currently produces 3,80,000 barrels per day (bpd) and the crude is benchmarked to Brent.

Yemen will be offering five to 10 offshore blocks in the second-half of this year.

The Minister said Reliance Industries is in talks with local oil company Hoodoil to build a 50,000-barrels per day oil refinery in Yemen.

UNI