Producers hopeful of $50 oil price, business sustainability from cut

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Although OPEC+ agreed at the weekend to extend 9.7 million barrels cuts in daily crude oil production through the end of July, lending oil prices some support, operators in the exploration industry are hopeful that the cuts would be sustained to aid production and business sustainability.

In the course of global lock down, the ensuing energy imbalance affected oil producers and prices such that business sustainability was threatened and capacity to service over N3.4 trillion loans weakened.

With the lock down lifted and oil prices rebounding, African Energy Chamber believes that liquidity challenges will be addressed. According to the chamber, the re balancing of the market is key for African oil-producing nations to preserve jobs in the sector and give the continent an opportunity to stabilize and recover.

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