VIENNA, April 22 (NNN-AGENCIES) — The OPEC alliance of oil producers said “several” member states, and some of its allies in the OPEC+ grouping, held a teleconference Tuesday to discuss the plunge in oil prices caused by the coronavirus pandemic.
The organisation tweeted that ministers held an “informal teleconference to brainstorm the current dramatic oil market situation” but it was not clear whether Saudi Arabia, OPEC’s largest producer, took part.
A photo tweeted by the organisation appeared to show representatives from countries including Nigeria, Iraq and Venezuela taking part but there was no confirmation of which countries joined the meeting.
OPEC said the teleconference was held at the initiative of Mohamed Arkab, energy minister of Algeria, which currently holds OPEC’s presidency.
A spokeswoman for Russian Energy Minister Alexander Novak said Russia — viewed as the leader of the OPEC+ grouping — did not take part.
Novak said in a statement on Tuesday that there was no need to “dramatise” the current market situation.
“OPEC+ countries are carefully monitoring the situation and have all means to react, if need be,” Novak said.
OPEC said the ministers participating in the teleconference restated their “commitment to the oil production adjustment” agreed earlier this month which involves a cut of 9.7 million barrels per day (bpd) from May in an attempt to stop prices plummeting.
Producers outside the alliance pledged to cut an additional 3.7 million bpd.
The pandemic has crippled global energy demand and worsened a supply glut, leading US crude futures to go below zero for the first time on Monday.
OPEC said ministers were prepared “to continue holding such consultations on the market situation on regular basis”.
US oil prices surged Wednesday after a turbulent start to the week that saw them fall below zero for the first time due to a coronavirus-triggered demand shock.
US benchmark West Texas Intermediate for June delivery rose 18.93 percent to $13.76 a barrel, after suffering heavy falls in New York overnight.
WTI for May delivery on Monday collapsed to an unprecedented low of minus $40.32 as traders scrambled to sell it before the contract expired Tuesday, but could find few buyers with storage capacity fast filling up.
European benchmark Brent crude for June delivery was up 0.98 percent at $19.52 a barrel, after tumbling to an 18-year low the previous day. — NNN-AGENCIES
