The world’s largest oil producers have agreed a historic deal to cut global oil production by almost 10% to protect the market against the impact of the Coronavirus pandemic.
Crude oil prices rose marginally on Friday (May 1) as the Organization of Petroleum Exporting Countries (OPEC) and their allies started reducing output.
Members of the Opec oil cartel and its allies have agreed to withhold almost 10m barrels a day from next month after the outbreak of Covid-19 wiped out demand for fossil fuels and triggered a collapse in global oil prices.
The COVID-19 outbreak has reduced demand for oil due to isolation and travel restrictions measures introduced globally to slow down the spread of the disease.
Africa’s major oil producers include Nigeria, Angola and Gabon. A rise in oil prices between $50 to $60 would allow them to earn badly needed foreign exchange to carry out development projects.
The World Bank and the IMF have urged African oil-producing nations to diversify their economies to reduce their over-dependence on oil to improve the living standards of their people.
Source: Voice of Nigeria