Member countries of the G20, weekend, agreed to join Nigeria, other members and non-members of the Organisation of Petroleum Exporting Countries (OPEC) and OPEC+, in ensuring the stability of the global crude oil market.
In a statement issued after the G20 Extraordinary Energy Ministers Meeting, the G20 nations acknowledged that the Novel Coronavirus (COVID-19) pandemic had introduced unprecedented challenges across the globe.
According to the Group of 20 leading economic powers, the significant economic contraction and uncertain outlook due to the pandemic had exacerbated energy supply and demand imbalances, increasing energy market instability, directly impacting the oil and gas sector and spilling over into other industries, further hampering the global economic recovery.
It maintained that this market instability, has added to the heavy toll on jobs, businesses, and people.
These challenges, the G20 nations explained, had reminded everyone of the importance of a stable, affordable, sustainable, and uninterrupted supply of energy to meet demand, especially for essential services, such as healthcare, which is crucial to ensure that the global community can overcome this crisis, especially in developing and least developed countries.
It added that it recognises the vital role that well-functioning, stable, open, transparent and competitive energy markets play in bolstering economic activity and growth.
It said, “We, the G20 Energy Ministers are profoundly saddened by the human tragedy caused by the COVID-l9 pandemic. We convene today against this backdrop of a crisis that, in addition to its direct health and economic and social impacts, has also contributed to the destabilization of global oil and gas markets and compromises energy security for many nations.
“The impacts on the energy markets, in turn, further deepen the global economic crisis and hinder sustainable development. We agree that ensuring energy market stability and ensuring affordable and secure energy are key in addressing the health, well-being and resilience of all countries throughout the crisis response and recovery phases.”
The G20 energy ministers disclosed that they recognised the efforts of OPEC+ and other oil producers to stabilize energy markets, while they also acknowledged the importance of international cooperation in ensuring the resilience of energy systems.
To this end, the G20 nations resolved that: “We commit to work together in the spirit of solidarity on immediate, concrete actions to address these issues in a time of unprecedented International emergency.
“To underpin global economic recovery and to safeguard our energy markets, we commit to work together to develop collaborative policy responses, that will ensure market stability across all energy sources taking into account each country’s circumstances.
“We commit to take all the necessary measures to ensure the balance of interests between producers and consumers, the security of our energy systems and the uninterrupted flow of energy.
“In doing so, we are particularly aware of the need to ensure that health and other sectors that are leading the fight against COVID-l9 have the energy supplies that they need.”