The Organization of Petroleum Exporting Countries’ (OPEC) Secretary-General, Mohammed Barkindo, disclosed that OPEC lost $1t to dwindling oil prices, Daily Trust informed.
On a visit to Nigeria, Barkindo explained the amount was lost in terms of deferred projects and outright cancellation of projects across its entire value chain, Africa Review wrote.
“We need consistent investments in order to maintain current production and take care of reserves and secure future supplies,” he said.
The OPEC chief said it was agreed that non-members be invited to build a platform of 24 producing countries to agree on a joint supply, seeking to adjust about 1.8mb/d.
“For the first time in history, we were able to build a platform of 24 producing countries within six months in order to address the stock overhang which has been the variable to the supply equation that had sent this market off balance since 2014,” he added.
According to him, the agreements reached by the cartel and non-Opec members in Algiers and Vienna during their meetings in November and December 2016 were lifesaving measures as they had overcome market challenges.