Oil crash compounds coronavirus hit for cash-strapped OPEC states – ZAWYA

Oil crash compounds coronavirus hit for cash-strapped OPEC states – ZAWYA

LAGOS- Collapsing oil prices are costing some OPEC members not only lost revenue when they most need it to tackle the coronavirus crisis, but also market share they may never recoup.. OPEC producers such as Nigeria, Angola, Algeria and Venezuela cannot compete with the lower costs of erstwhile allies Saudi Arabia and Russia, who are flooding the market.. But while desperate for OPEC+, the Organization of the Petroleum Exporting Countries plus Russia, to ride to the rescue, Africa's oil producers have little leverage.. As well as hitting already tight budgets, the oil price drop had led oil majors to cut billions from spending plans.. The sudden cash crunch is also hindering the ability of these oil producers to manage growing coronavirus outbreaks.. President Nicolas Maduro said this month that Venezuela is selling its oil below production costs, though he did not announce any action to offset the revenue loss..