Developing countries could lose up to 85% of oil and gas income in 2020: OPEC, IEA

IEA and OPEC leaders released a rare joint statement in reaction to the coronavirus pandemic and the crash in oil prices

OPEC, IEA, Mohammad Barkindo, Fatih birol, Coronavirus

Developing countries will lose 50% to 85% of their oil and gas income in 2020 if market conditions remain the same, according to a joint statement by the International Energy Agency (IEA) and the Organisation of Petroleum Exporting Countries (OPEC).

The executive director of the IEA, Fatih Birol, and the secretary general of OPEC, Mohammad Barkindo, discussed the coronavirus pandemic and market conditions, noting that the drop in income "is likely to have major social and economic consequences, notably for public sector spending in vital areas such as healthcare and education."

They both said that market stability is important for producers and consumers alike, and stressed the importance of finding ways to minimise the impact of the current situation on vulnerable developing countries."

The report did not specifically mention the oil price war started by Saudi Arabia and Russia, or the breakdown of the OPEC+ meetings in early March.

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