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World's Oil Sector Forced to Rethink Its Strategy

Oil producer Algeria, which chairs the presidency of the OPEC Conference has been at the forefront of urging oil producing countries to seize the opportunity to agree on "a global, massive and immediate" production cut. Algeria's Energy Minister Mohamed Arkab said "the oil market is facing an unprecedented decline of demand due to the impact of the COVID-19 pandemic on world economic activity and to the containment measures taken by many countries. It is also facing a large increase in world oil supply, due to the decision by some countries to produce at maximum capacity. This double shock led to a drastic drop in oil prices. This will be further accentuated in a few weeks, when global oil storage capacity will reach saturation, resulting in a lasting dislocation of the oil industry." Algeria and Nigeria are among the oil producing nations that cut their oil production.  

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(file photo).

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