OPEC members lost over US$2 trillion in revenues and capital expenditure in the oil price crash, the cartel’s director general Mohammed Barkindo said, speaking to media in Nigeria. About half of this was lost revenues as prices tumbled from over US$140 a barrel to below US$30, and the rest was wiped out as cancelled projects.
Barkindo warned that the loss in capital investments was particularly serious as it threatened the future security of oil supply. Acknowledging the economic diversification efforts of OPEC members that were forced on them by the price crash, Barkindo said the importance of oil in helping to achieve this diversification was not to be underestimated.
The OPEC chief was optimistic about the outcome of the group’s concerted market rebalancing effort that should take off some 1.8 million barrels per day from global supply. Indeed, prices have been climbing recently, albeit slightly, thanks to unexpectedly high compliance rates among …