The Organisation of the Petroleum Exporting Countries (OPEC) has weighed into the various crisis facing its member states, assuring that it plans on preventing issues in these countries spiral into an energy crisis.
Why this matters: Several OPEC countries like Iran, Libya, and Venezuela are threatened by international sanctions and violence, and if not well handled, OPEC believes it could cause an energy crisis and affect the global economy.
OPEC’s secretary-general, Mohammed Barkindo, said it will ensure the oil group stays united despite current troubles in several of its member countries. He emphasised on countries currently under unilateral sanctions such as Iran and Venezuela.
Venezuela is facing United States sanction as a result of the leadership crisis where opposition leader Juan Guaido is trying to rally demonstrators against President Nicolas Maduro. Guaido has the support of the U.S and many European Union members. Meanwhile, rival forces are fighting for control of Tripoli, the capital of Libya.
The OPEC chief said:
“As an organisation, we will remain focused on our goal of avoiding an energy crisis that may affect the global economy.
“OPEC is ‘committed to stay united’ and ‘not slip back into the chaos’.”
Division among OPEC members: Iran has often criticised some OPEC members for going along with Washington’s policies against Iran and lacking solidarity and recently, Iran’s oil minister, Bijan Namdar Zanganeh, reiterated that claim.
Iraq and Saudi Arabia have often been at the receiving end of Iran’s criticism.
The U.S-OPEC Tussle: Nairametrics had reported that Oil Price could burst and Nigeria must brace up for it. Recent developments in the global oil market have indicated that there may be a repeat of the great oil price burst of 2014 when Brent dropped significantly from $115 per barrel to as low as $35 in 2016. The event slowed down growth in oil-dependent economies like Nigeria.