Algeria, which chairs the presidency of the OPEC Conference, has urged oil producing countries to take advantage of the upcoming meeting and agree on a global, massive and immediate production cut. According to Energy Minister Mohamed Arkab, Algeria will spare no effort, as in the past, to find consensual solutions and contribute to any effort that aims to stabilize the oil market, for the benefit of producing and consuming countries.
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Dealing with drop in oil prices
“The oil market is facing an unprecedented decline of demand due to the impact of the COVID-19 pandemic on world economic activity and to the containment measures taken by many countries. It is also facing a large increase in world oil supply, due to the decision by some countries to produce at maximum capacity. This double shock led to a drastic drop in oil prices. This will be further accentuated in a few weeks, when global oil storage capacity will reach saturation, resulting in a lasting dislocation of the oil industry,” he said.
He further added that, aware of this situation and its associated risks, as well as of its consequences on oil-producing country people, at a time when they are fighting against the COVID-19 pandemic, Algeria calls upon all oil producing countries to seize the opportunity of the meeting scheduled to be held on April 9, to work cooperatively towards reaching an agreement for a global, massive and immediate reduction in oil production.
