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Friday, October 7, 2022
The secretary-general of APPO, the African Petroleum Producers Organization, has come out in support of the recent decision by OPEC to cut production by around 2%, on the side-lines of Africa Oil Week in Cape Town.
“It is a decision well taken,” said APPO secretary-general Dr Omar Farouk Ibrahim, on the sidelines of Africa Oil Week, being held here. “I believe it is the right thing to do to save the industry and also to ensure that there is stability for today and tomorrow.”
The decision by OPEC, which includes major oil producers Russia and Saudi Arabia, as well as African countries and APPO members Nigeria, Algeria, Angola, Congo and Libya, saw the price of Brent crude oil rise 1,5% to more than $93 a barrel.
“Every country has a responsibility to protect the interests of their citizens and if by reducing production, they see it as serving their best interests, so be it. When developed countries make decisions, they don’t sit and think [about] how it is going to affect developing countries. The interest of their citizens is paramount.”
The decision by OPEC (Organization of Oil Producing Countries) was made following the 33rd OPEC and non-OPEC ministerial meeting on 5 October. In a statement, the organization said it would “reduce overall production by 2 mb/d, starting from November 2022.
It said the adjustment was being made “in light of the uncertainty that surrounds the global economy and oil market outlooks, and the need to enhance the long-term guidance for the oil market.”
The move comes in the context of a global economic downturn, the war in Ukraine, and the recent G7 cap on the price of Russian oil exports, as part of a new sanctions package against Moscow.
Dr Ibrahim’s comments reflect a growing assertiveness among African oil producers that the region has the right to chart its own energy course.
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