African Energy Ministers are calling for the stabilisation of the volatile oil price as both consumers and producers want predictability in the petroleum market.
Global oil prices have escalated by more than ten percent in the last month.
This has affected many emerging markets whose currencies have also tumbled as a result of geo political tension.
South African motorists have been hard hit as the rand lost further ground this week and oil prices continued to increase.
The Organisation of the Petroleum Exporting countries (OPEC) says they are looking at ways to stabilize prices in the petroleum industry.
Speaking at the third Oil and Power conference in Cape Town, Secretary General of OPEC, Mohammed Barkindo says the unstable prices are affecting consumers.
“When this cycle took off in in the autumn of 2014, if you recall as a result of supply and demand imbalance, we saw how prices went down south and then the level of volatility during that period. But continued month after month to stick to the levels of production that we had agreed upon sometimes well over one hundred percent the level of volatility in the market also subsided but because it’s a free market it’s impossible to have permanence for a long period of time. But we are working towards having this stability for a sustainable basis”.
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