Angola and Algeria lead oil price strategy

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Angola and Nigeria, two biggest producers belonging to the African Petroleum Producers Association (APPA), which represents oil and gas producers from Algeria to South Africa, called for a cut in oil output globally.

This initiative was created to seek collaboration between members of OPEC and other oil producers, in order to to reduce output and stabilise oil prices. According to the released information, APPA wants “to set up a platform of commitment at the international level from the producing countries,” said Ousmane Doukoure, director of exploration and production at Ivory Coast’s oil ministry, as he read out a statement on Friday at the end of an APPA meeting in Abidjan, Ivory Coast’s commercial capital.

African countries from Angola to Nigeria to Equatorial Guinea have had to cut their budgets in recent months after the plunge in oil prices affected the amount of income they will get from their biggest exports. Countries, including the continent’s biggest economy Nigeria, have slashed growth forecasts.

“We are very concerned by the drop of the price,” said Gabriel Lima Obiang, oil minister for Equatorial Guinea, after the meeting. “We are revising already our budget because of the price and we have been welcoming an initiative by Angola and Algeria to study a way we can work together to stabilise the price in the future.”

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