As oil prices sank about 14 per cent last week and the Brent hit a 12-month low on the back of the coronavirus outbreak, the Organisation of Petroleum Exporting Countries (OPEC) is meeting in Vienna this week, to help stabilise the market.
The Executive Chairman of the African Energy Chamber, Nj Ayuk, was on Deutsche Welle to discuss the coronavirus’ impact on oil prices and OPEC’s upcoming moves to stabilise global energy markets.
“A bold and substantial production cut by OPEC and OPEC+ member countries will help alleviate oil market fears and bring stability,” said Mr Ayuk.
“OPEC has a track record of making market-driven deals that stand to benefit Wall Street and Main Street. At the Energy Chamber, we remain bullish about a good deal for oil producers and consumers, and most importantly market stability.
“Africa will be closely watching what happens in Vienna this week, especially after its first cases were declared in Senegal and Nigeria.”
The near-term outlook for global financial and energy markets remains grim, and the forecast for the remaining of the year is deteriorating and is not looking any better.
Analysts notably point to the crude oil’s forward curve flattening in recent days, signaling oil traders’ lack of appetite for holding or selling stocks. At the end of the week, Brent process were trading at slightly over $50 per barrel.
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