OPEC members lose $1trn to oil price crisis

Follow 9News Nigeria On Social Media

Social sharing

The over two years of oil price crisis has cost the Organisation of the Petroleum Exporting Countries (OPEC) more than $1 trillion in losses and a decline of 26 per cent in industry-related investments.

Besides, with the unsteady developments in the growth of the global economy, there is a projection that the oil industry would record further contraction of about 22 per cent in investment this year.

OPEC Secretary-General, Sanusi Barkindo, disclosed this in Washington DC, at the ongoing International Monetary Fund (IMF)/World Bank Group meetings.

He said there was cautious optimism that the recent increase in oil price, which was pushed to $50 a barrel by the recent production cut by OPEC, would continue.

“As I have just mentioned in the plenary, the prospect for 2017 is also still looking bleak. So, for the first time in recent memory, we are not only having three consecutive years of depressed oil prices, we are also seeing contraction in capital investments, particularly in the upstream for three consecutive years.

“Now, this is a very serious development that is threatening future supply to the global community with its consequences on the fragile economies as you have heard from the IMF,” he said.

Barkindo noted that the decision to agree on a range of ceiling of 32.5 million barrels a day to 33 million barrels a day production was proactive and timely, adding that the objective was to restore stability in the market and address the issue of high inventories that was depressing prices.

READ ALSO  Protesters Shut Down Port Harcourt International Airport (Photo)

“The sum total of that hopefully, would bring forward the rebalancing of the market so that we would be able to achieve some form of equilibrium in prices with impact on revenues to member countries, especially our country Nigeria that has suffered both from low prices and low production.

“IMF made a very holistic and very realistic assessment of the global economy- ‘too low growth for too long and benefiting very few.’”

Source: Today.ng 

Leave your comment on this post

THE ROTTEN FISH: CAN OF WORMS OPENED OF APC & TINUBU'S GOVERNMENT OVER NIGERIA'S ECONOMIC DOWNTURN

WATCH THE CRITICAL ANALYSIS AND KNOW THE RESPONSIBLE PARTIES TO BLAME FOR NIGERIA'S ECONOMIC CHALLENGES, WHILE CITIZENS ENDURE SEVERE HARDSHIPS.

Watch this episode of ISSUES IN THE NEWS on 9News Nigeria featuring Peter Obi's Special Adviser, Dr Katch Ononuju, 9News Nigeria Publisher, Obinna Ejianya and Tinubu Support Group Leader, McHezekiah Eherechi

The economic crisis and hardship in Nigeria are parts of the discussion.


Watch, leave your comments, and share to create more awareness on this issue.


#9NewsNigeria #Nigeria #issuesInTheNews #politics #tinubu THE ROTTEN FISH: CAN OF WORMS OPENED ...
DON'T FORGET TO SUBSCRIBE AND LEAVE YOUR COMMENTS FOR SUBSEQUENT UPDATES
#9newsnigeria #economia #economy #nigeria #government @9newsng
READ ALSO  Zack Orji Is Alive, Ignore Mischief Makers – AGN President, Emeka Rollas

www.9newsng.com

Leave your comment

Click on the link below or Scan the QR Code to join the 9News Nigeria WhatsApp Channel

9News Nigeria Investigative Reports WhatsApp Channel
9News Nigeria Investigative Reports WhatsApp Channel
About Timothy Stephen 1104 Articles
9News Nigeria Global Breaking News Platform News from Nigeria News from Africa Nigerian News African News

Be the first to comment

Leave your comment