As oil prices sank about 14 percent last week alone and the Brent hit a twelve-month low on the back of the coronavirus outbreak, the Organization of Petroleum Exporting Countries (OPEC) is meeting in Vienna this week to help stabilize the market.
Executive Chairman of the African Energy Chamber, Nj Ayuk said this in an interview on Deutsche Welle to discuss the coronavirus’ impact on oil prices and OPEC’s upcoming moves to stabilize global energy markets.
He said, in part, “A bold and substantial production cut by OPEC and OPEC+ member countries will help alleviate oil market fears and bring stability. OPEC has a track record of making market-driven deals that stand to benefits 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, signalling 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.