News

October 19, 2008

Africa Weekly: Verenex Energy Strikes Oil In Libya, Maurel & Prom Updates On Gabon And Tanzania, Eni Discovers Oil In Angola, While OPEC Reschedules Meeting To Next Friday

By Tawanda Karombo

It seems world oil markets are in for a bumpy ride with uncertain times for global oil investors. At one time, crude oil prices were in sharp decline, rapidly falling to a record 16 month price of below $US70/barrel and just as the week comes to a close, the commodity claws back some of its lost lustre and rises nearly $2 by early trade on Friday. This despite developments which saw oil fall for a third day just 24 hours earlier as the commodity plunged to a 13- month low near US$72 on the back of investors in the commodity abandoning oil amidst fears and concerns over dwindling demand at a time when the global economy is ever tinkering towards recession.

Speculation among oil traders and analysts was immediately rife that the Organization of the Petroleum Exporting Countries (Opec) would reduce supply to support prices when it meets next week. The bloc said Thursday that it had brought forward to Friday next week its scheduled emergency meeting to discuss the impact of global recession on oil markets and to find ways to stem the tumbling prices of the precious commodity.

Unlike the previous week, the time the continent's oil markets...