The global financial and economic crisis continues to unfold – but not only in the rich, industrialized countries from where it originates. It is also severely affecting developing nations, a category into which many oil producing countries fall.

We are faced with ever more dismal economic indicators, despite continued news of stimulus packages and bailouts from industrialized countries. We look with high expectations to the leaders of the G20 who need to provide clear, coordinated and immediate actions in order to restore confidence. These actions should include the introduction of strict financial regulations, the absence of which is at the heart of today’s problems. Turning our attention to the oil industry in particular, we can see that the crisis has impacted demand significantly. The, global oil demand growth was in decline for the first time since the early  while oil demand for 2023 hopefully to increase. These downward revisions show the continued deterioration of the world economy and contracting international trade. Extreme oil prices, whether too high or low, are damaging to producers and consumers alike. The extreme highs of last summer driven by poorly regulated future markets – even though the oil market remained very well supplied – were just as problematic for the long-term stability of the market as the low prices of today. Such volatility is devastating to an industry with long lead times and massive upfront costs.