An advisory committee of the Organisation of Petroleum Exporting Countries (OPEC) has recommended a further reduction of production output until June over the coronavirus outbreak. Further production cuts could negatively impact Nigeria as the 2020 budget estimates that N2.64 Trillion of its projected N8.42 Trillion will be realised from crude oil.
The committee, which consists of representatives from oil-producing countries, agreed that the coronavirus “is dampening global energy demand”. NAN reports that the committee recommends “a further adjustment in production until the end of the second quarter of 2020 on top of the production curbs that are already in place”.
Mohamed Arkab, the Algerian energy minister who currently serves as OPEC president, said the coronavirus epidemic is having a negative impact on economic activities. “The coronavirus epidemic is having a negative impact on economic activities, particularly on the transportation, tourism, and industry sectors, particularly in China, and also increasingly in the Asian region and gradually in the world,” he explained.
Arkab said he would consult with those among the 24 oil producers who are not part of the advisory committee that recently met in Vienna to reach consensus on the way forward. “The situation is clear. It requires corrective action in the interest of all,” he added.
The next decision-making meetings among OPEC and non-OPEC oil ministers are scheduled on March 5 and 6 in Vienna. The death toll reported from the coronavirus outbreak was 1,011 on Monday night, 10th of February 2020 with cases confirmed in 19 countries.