“After repeatedly appealing and lobbying African countries to join OPEC [Organization of Petroleum Exporting Countries] in restoring market stability, the Chamber is particularly pleased to see strong support for OPEC by all countries African producers, ”said a statement released today by CEA.
On Sunday, OPEC countries approved a cut of 9.7 million barrels per day between 1 May and 30 June this year, and this cut should then be readjusted to 8 million barrels per day by the end of the year, in a attempt to level a market particularly affected by the covid-19 pandemic.
The agreement also assumes that this cut will be reduced by six million barrels per day between 1 January 2021 and the end of April 2022.
"The spirit of cooperation has triumphed, and under the leadership of a son from Africa, Mohammed Sanusi Barkindo [the organization's secretary general], OPEC has reached a historic agreement for our continent and the global energy market," said executive secretary of CEA, NJ Ayuk.
The head of the African organization added that the agreement shows that “in times of extreme need”, countries can “put aside their differences and unite through a historic agreement”.
"The Chamber will continue to make all its resources available to support this coordinated industry effort beyond 2022," concluded NJ Ayuk.
In addition to the African countries that make up OPEC, such as Nigeria, Angola, Algeria, Libya, Gabon, Equatorial Guinea and Republic of the Congo, countries such as Egypt, South Sudan, Chad or Niger are responsible for oil production in Africa.
The cut announced on Sunday represents a tenth of the global supply, according to sector officials from several countries that participated in the negotiations, an unprecedented agreement.
Due to the consequences of the spread of the new coronavirus, with the impact on the economy and the decrease in consumption, the OPEC Joint Technical Committee has been recommending cuts in oil production.
The aim of the agreement is to find a solution to the rapid drop in oil prices due to the collapse of demand and the price war between Saudi Arabia and Russia.
The covid-19 pandemic has unbalanced a market in which the global supply was already in surplus and is now in seldom seen proportions, with travel restrictions taken in all countries to prevent the spread of the new coronavirus.
A new meeting is scheduled for June 10, via video conference, "to decide further measures, as far as is necessary to balance the market".
