Maghreb Edition

Business: Coronavirus likely to force more oil production cutsF

Posted On 8 February 2020

Number of times this article was read : 272
Algiers, Feb 8, 2020 – A committee appointed by the OPEC club of oil-producing countries and its allies to study the effects of coronavirus recommended additional output cuts on Saturday, Algeria’s energy minister said.  “The coronavirus epidemic has had a negative impact on economic activity, notably in transport, tourism and industry, particularly in China,” Mohamed Arkab, who is also president of the conference of the Organization of the Petroleum Exporting Countries, said in a statement.
Delegates of OPEC and other oil producers including Russia — together known as OPEC+ — have been in a “joint technical committee” meeting in Vienna this week to discuss cutting production, amid fears of the coronavirus situation in oil consumer China affecting the market. The new coronavirus has spread to more than 20 countries after emerging in December in China, where it has killed more than 400 people and infected 20,000.
As the world’s leading importer and consumer of oil, China is a key player in the market. OPEC and its allies in December extended an existing agreement to curb crude oil production to prop up prices. The joint technical committee “recommended extending until the end of 2020 the current production reduction agreement… and proceeding with an additional reduction in production until the end of the second quarter of 2020,” Arkab said.
Arkab added that he supported the conclusions of the committee, which would continue consultations among OPEC+ states to seek mutually agreeable solutions “to quickly stabilise the oil markets and face the current crisis”.  Crude prices have tumbled since the deadly outbreak in the world’s second-biggest economy. The US benchmark oil contract, WTI, has fallen by around 18 percent over the past month.
By AFP

Subscribe to Urgent Notifications and Newsletter

Most Recent Stories from the Region

Gulf War Escalates as Energy Markets Reel and Regional Fronts Multiply$

The war involving Iran, Israel, and the United States is expanding across the Middle East, with growing consequences for global energy markets and regional security. Disruptions in the Strait of Hormuz and attacks on Gulf energy infrastructure have pushed oil prices higher and raised concerns about supply stability. As missile exchanges intensify and fighting spreads to Lebanon, world leaders are scrambling to assess the economic fallout and prevent further escalation.

West Africa: Jihadist Attacks Intensify in Northern Benin Amid Cross-Border Insurgency Pressure$

Jihadist attacks in northern Benin have intensified in recent weeks, with militants linked to JNIM claiming a deadly assault on a military position near the Niger border and carrying out additional raids on security posts along the country’s volatile frontiers with Burkina Faso and Nigeria. The violence underscores how northern Benin has become part of a wider cross-border insurgency spilling south from the central Sahel, even as authorities bolster Operation Mirador and try to prevent armed groups from entrenching themselves on Beninese soil.

Desert Locusts Stir Fresh Worries in North-West Africa$

Small desert locust swarms recently detected along the western Sahara corridor have prompted stepped-up monitoring across parts of North and West Africa, where shifting rainfall can quickly turn quiet desert areas into launchpads for wider infestations.

Written by The North Africa Journal

The North Africa Journal is a leading English-language publication focused on North Africa. The Journal covers primarily the Maghreb region and expands its general coverage to the Sahel, Egypt, and beyond, when events in those regions affect the broader North Africa geography. The Journal does not have any affiliation with any institution and has been independent since its founding in 1996. Our position is to always bring our best analysis of events affecting the region, and remain as neutral as humanly possible. Our coverage is not limited to one single topic, but ranges from economic and political affairs, to security, defense, social and environmental issues. We rely on our full staff analysts and editors to bring you best-in-class analysis. We also work with sister company MEA Risk LLC, to leverage the presence on the ground of a solid network of contributors and experts. Information on MEA Risk can be found at www.MEA-Risk.com.