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Energy

Diamantino Azevedo welcomes “upward dynamics” in the oil market

The Angolan Minister of Natural Resources, Oil and Gas welcomed this Thursday, during the OPEC + ministerial meeting, a “much desired upward dynamic” in the oil market, which leave the organization with “a cautious optimism” for the future.

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Diamantino Pedro Azevedo highlighted factors such as "the continuous reinforcement of the worldwide campaign for the distribution of vaccines against covid-19, as well as the hope in the approval of the economic stimulus package in the United States and the improvement of the economic prospects in some countries in Asia" as contributors to this upward dynamic.

The official was speaking at the opening of the OPEC + ministerial meeting, which brings together 13 member states from the Organization of Petroleum Exporting Countries (OPEC) and 10 non-OPEC partners, an organization that Angola presides over.

"This is good news and leaves us with cautious optimism after an extremely difficult 2020", underlined the official at the meeting, which took place via video conference.

"In my country, we have suffered massive economic losses, not only in the oil and gas sector, but throughout the supply chain. Areas of the economy that were suffering before the pandemic are now at a difficult time," the minister lamented.

Diamantino Azevedo praised that "it must also be considered that African countries were not able to introduce economic stimulus measures as seen in OECD countries [Organization for Economic Cooperation and Development]", which led to these countries having " struggling to stay afloat while eagerly awaiting an imminent recovery. "

The minister also pointed out the "direct correlation" between the "success of joint efforts" of the member states of OPEC + and the benefits for their economies, pointing out that it was "a situation of mutual gains".

Due to the consequences of the covid-19 pandemic, with the impact on the economy and the decrease in consumption, the OPEC Joint Technical Committee recommended cuts in oil production.

The official said that there is a "brighter image on the horizon", but that this should not lead to the leaders of each country "riding the moment" and pointed out that "it is time to intensify" efforts. "We all understand the unpredictability of the oil market and that the prospects can change overnight," he warned.

Angola was elected on 30 November for the rotating presidency of the OPEC ministerial conference in 2021, replacing Algeria.

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