The African Petroleum Producers’ Organisation (APPO), has followed with keen interest the meeting of OPEC+ or Declaration of Cooperation Partners which held on Thursday 9th April 2020 and the meeting of the G20 Energy Ministers which held yesterday Friday 10th April aimed at halting and reversing the unprecedented volatility that came to characterize the oil market since the beginning of March 2020.
We commend all participant at the game for their commitment they demonstrated in finding a solution to a problem that would have had serious repercussion to the global economy both now and in the medium term and long terms. The decision of OPEC+ to cut crude oil production by 10 million barrels per day with effect from 1st May 2020 till 30 June 2020 and thereafter 8 million barrels per day to the end of the year 2020 and six million barrels per day till end of April 2022 is a significant step in halting the speed at which the global oil industry was heading for total collapse.
We also commend the G20 Energy Ministers for keying to the laudable initiative of the OPEC+ by committing to take all necessary and immediate measures to ensure energy market stability. Although not expressly stated, we believe that the necessary measures include a cut in crude oil production.
In the spirit of cooperation and burden sharing, and recalling the communique of 9th April 2020 expressing our support to OPEC and Non-OPEC Member Countries as well other oil producers in their concerted effort at bringing stability to the global oil market, APPO Member Countries who are not in the OPEC+ have also committed to contributing to the global efforts at stabilizing the oil market, by effecting cuts on their daily productions.
Details of the cut will be communicated to the OPEC Secretariat as soon as possible.