The report pointed out that OPEC did so in an urgent and sudden manner, as it focused on extracting lessons learned from the past, noting that this difficult time is indeed characterized by the abundance of great challenges facing the oil industry, but producers feel very confident about the success.
He noted that the current concern is the repercussions of the Corona pandemic, but we must not forget the rest of the major challenges and look at the picture in a comprehensive manner and do not forget the other challenges, including climate change policies, energy transformation, and transfer programs, and the need to enhance investments and sustainable development.
The report added that we are currently witnessing large and successive developments in the industry, for example in technology, where efforts must be mobilized to reduce the carbon footprint of the industry through the expansion of carbon capture, storage, and use projects, stressing the need to make the entire production chain more efficient than ever before, as well as raising the efficiency Vehicles and transport in general, stressing that oil will form a large part of the energy transition.
He pointed out that the oil industry has a lot of experience, ingenuity, and a lot of contributions to the developed world of energy, and with a favorable investment climate, the industry can maintain its pioneering history in the field of technology and innovation for the benefit of humanity.
He pointed out that OPEC Secretary-General Mohamed Barkindo asserted that the Corona pandemic crisis represents one of the most formidable challenges in OPEC’s 60-year history, noting that Abdelmadjid Attar, Algerian Minister of Energy and President of the OPEC General Conference said that the presidency of the OPEC conference It represents a great honor for Algeria, especially as it coincides with the 60th anniversary of the founding of OPEC, indicating that 2020 is surrounded in an unprecedented way many challenges resulting from the Corona epidemic, which has had negative consequences for economies and people's lives.
The report stressed OPEC's conviction to support financial and economic stimulus packages to protect economic sectors and jobs, ensure a rapid recovery from the pandemic and reduce the negative impact on the oil market, especially since the tragic consequences of the epidemic included all energy markets in general and the oil market in particular.
He stated, quoting the Algerian minister, that when Covid-19 surprised the world, countries had to take emergency and strict measures such as comprehensive closures to slow the spread of the epidemic, which had not happened in the world for more than 100 years, indicating that these steps were necessary and natural and caused almost a halt. For months in all economic activities, it severely negatively affected the demand for oil.
The report referred to the Algerian minister's saying that the drop in demand by about 30 percent led to a rapid reaction on the part of "OPEC" in cooperation with non-OPEC countries to treat the destruction of demand, as a result of the pandemic, stressing that "OPEC" continues to decisively influence the market. Oil, and puts 60 years of experience at the service of the industry.
He added, Algeria's assertion that OPEC + succeeded through declaring cooperation in stopping the complete collapse of the market and allowed the industry to change its course more quickly than expected towards a real recovery, indicating that partnership and cooperation between producers are the basis for achieving and maintaining success in the future, stressing the need To the partnership of producers more than ever before, as the current difficult circumstances required a radical and unprecedented solution, and OPEC succeeded in bringing producers from all over the world to the work table together.
On the other hand, with regard to prices at the end of last week, oil fell the first yesterday, registering a weekly decline of more than 2 percent, as the incidence of Covid-19 increased throughout the world, while oil supplies are bound to increase in the coming weeks.
Brent settled at $ 41.92 a barrel, up two years, while US West Texas Intermediate crude fell six cents to $ 40.25 a barrel. On a weekly basis, Brent lost 2.9 percent, and West Texas Intermediate lost 2.1 percent.
In the United States, the largest oil consumer in the world, the infection rate is increasing in the Midwest, while New York City, which was the most affected in the spring, is considering renewing lockdown measures, and the country has witnessed the death of more than 200,000 people as a result of the virus. Fuel demand in the United States remains stagnant, as the pandemic restricts travel and undermines the recovery of the economy.
Meanwhile, the entry of more crude oil to the global market threatens to increase supply and reduce prices. Baker Hughes Energy Services said the number of US oil and gas rigs rose from six to 261 in the week ending September 25.
Recently, Libya increased its production, and Shell temporarily leased the first crude tanker to be loaded at the Libyan port of Zueitina since January.