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Ukraine Conflict Causing Huge Volatility in Energy Market -OPEC

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The Organisation of the Petroleum Exporting Countries (OPEC) has stated that the ongoing war by Russia in Ukraine was causing huge volatility for the global energy market. Mr Mohammad Barkindo, OPEC Secretary-General, made the assertion while speaking at the virtual 62nd Meeting of the Joint Technical Committee (JTC) on Wednesday.

Barkindo noted that there were implications and possible far-reaching consequences of the ongoing conflict in Ukraine.

He said: “As highlighted at our last meeting, the conflict has compounded the uncertainties related to the pandemic.

“It has heralded in further economic volatility, elevated risk premiums for oil, as well as many other essential commodities, given that both the Russian Federation and Ukraine are key global exporters, including of essential agricultural goods.

 “From the oil market perspective, however, what is clear is that Russia’s oil and other liquids exports of more than seven million barrels per day cannot be made up from elsewhere. The spare capacity just does not exist.”

According to him, its potential loss, through either sanctions or voluntary actions, is clearly rippling through energy markets. “The crises we face are causing huge volatility, with daily price swings of more than $5 per barrel occurring on 13 occasions across March and April,” Barkindo said.

He also recalled that April 2020 was the darkest and most sudden downturn in the history of the oil industry due to the COVID-19 pandemic. Barkindo said April 2020 saw global oil demand drop by more than 20mbpd with industries and businesses shuttered-in and populations locked down.

“None of us will ever forget April 20, 2020. On that day, the price of NYMEX WTI in the futures market plunged by 56 dollars/b to minus-37.6 dollars/b, the first ever drop into negative territory. “The markets were reacting to the situation with an unheralded bearish ferocity.

“It was a visceral moment for us all. I do not think any of us here ever envisaged a moment where sellers were literally paying buyers!

“However, the uncontrolled chaos over the month was also met by a landmark decision from OPEC and non-OPEC countries in the Declaration of Cooperation (DoC) on April 12,” Barkindo said.

He said the move was key to rescuing the industry from the precipice on which it stood, and in turn, assist with the resuscitation of the global economy. Barkindo said what recent events and developments imply was the continuing shift among policymakers to better understanding what was required in the energy transition.

He said: “It is not about moving from one energy to another; it is about utilising all available energies and understanding the energy security dimension of our future to enable the necessary investments.

“This was clearly highlighted last month by U.S. investment bank, JP Morgan in its first annual energy outlook. “It said the world needs to find 1.3 trillion dollars of incremental investment by 2030 to boost all types of energy output and infrastructure from renewables to oil and gas to avoid an energy crunch.

“What we are seeing is a wake-up call to all stakeholders. We need to ensure there is a clear pathway for all energy investments.” Sustained investment in oil is required if we are to expand production and ensure adequate spare capacity, a vital cog in the oil market landscape.” (NAN)

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Cote D’ivoire Announces 25 Per Cent Reduction in Airport Charges on ECOWAS Flights

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The Ivorian government announced a 25 per cent reduction in passenger and security charges for flights within the Economic Community of West African States (ECOWAS).

Three decrees were adopted to reduce and standardise passenger, security and safety charges for domestic flights, flights within Africa and international flights outside Africa, a government statement said.

According to the statement, the measure is designed to reduce the high cost of air travel, which has often included taxes making up over 60 per cent of total ticket prices.

It also intended to align Cote d’Ivoire’s strategy to boost the competitiveness of national carrier Air Cote d’Ivoire and its public airports with the ECOWAS common aviation charges.

This initiative is an ECOWAS-wide directive aimed at fostering economic integration, trade, and tourism across West Africa, the statement said. 

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France Urges Citizens to Leave Mali after Rebel Attacks

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France has urged its citizens to leave Mali “as soon as possible”, after a weekend of co-ordinated attacks by separatist fighters and Islamist militants.

In an update on Wednesday, the advice also warned French citizens not to travel to the West African nation, describing the situation as “extremely volatile”.

Explosions and sustained gunfire were reported across the country, including the capital, Bamako on Saturday.

In Kati, the defence leader Sadio Camara was killed in an apparent suicide bombing by militants, while in the north, separatist forces have taken control of the city of Kidal.

Mali’s military leader Gen Assimi Goïta said the security situation in the country was under control.

Speaking in public for the first time on Tuesday evening, he said the army had dealt a “violent blow” to the attackers, and signalled operations were still ongoing.

The spokesperson for one of the rebel groups, the ethnic Tuareg separatist Azawad Liberation Front (FLA), on Wednesday vowed “the regime will fall, sooner or later”.

Speaking during a visit to Paris, Mohamed Elmaouloud Ramadane said the rebels intended to take control of several other northern towns – Gao, Timbuktu and Menaka – following their success in Kidal.

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Ghana Military Convoy Attack Kills Three Civilians, Seven Assailants

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For Somalia’s malnourished children, already suffering the twin catastrophes of looming famine and radical cuts in foreign aid, the U.S.-Israeli war on Iran means more than soaring petrol pump prices; it is a matter of life and death.

Shortages of lifesaving therapeutic foods exacerbated by shipping disruptions are forcing clinics to turn away severely malnourished children and ration supplies, Reuters reporting ‌shows.

Almost half a million children under 5 suffer from “severe acute malnutrition” or “wasting”, the most life-threatening form of hunger, and the delays are worsening the effect of the aid reductions.

Health workers in Baidoa and Mogadishu say they have had to stretch out meagre stocks of specialised milk and nutrient-dense peanut-based paste vital to saving these children.

“Since the needs are large and we don’t have a lot of supplies, we have had to keep reducing the amount we give children,” Nurse Hassan Yahye Kheyre said.

The 225 cartons of peanut paste remaining at his clinic, which treats more than 1,200 children, will probably be exhausted within two weeks, according to the International Rescue Committee, which supplies the facility.

“If treatment is on-and-off, the children will become very weak, physically and mentally. And it may not be ⁠possible to reverse it,” Kheyre added.

The IRC is one of three aid groups that said transport delays and rising costs linked to the war in Iran were making an already complicated situation worse.

At the clinic in the southwestern city of Baidoa, run by IRC’s local partner READO, mother-of-nine Muumino Adan Aamin has been trying to get peanut paste for Ruweido, her 11-month-old daughter.

Ruweido is on a regimen of three sachets a day, but Aamin has been turned away twice because the clinic had run out each time.

Aamin nearly lost her daughter Anisa to hunger when a previous drought pushed Somalia to the brink of famine in 2017.

“Just bone and skin,” the toddler only survived because of peanut paste, Aamin said.

Nine years on, a new drought has pushed 6.5 million people, or one in three Somalis, into acute hunger, and aid groups are desperately trying to plug gaps.

An IRC order for peanut paste that would have fed over 1,000 children got stuck two months ago in the Indian port of Mundra, now congested with diverted cargoes unable to dock in the Gulf, said Shukri Abdulkadir, IRC’s Somalia coordinator.

After being told that the peanut paste, made in India, would take at least 30 more days to arrive, IRC cancelled the order.

It placed an emergency order for 400 cartons from Nairobi, and is moving supplies in Mogadishu ‌to Baidoa ⁠while awaiting them.

But the increase in freight and manufacturing costs has pushed the price of a single carton to 200 dollars from 55 dollars, according to CARE International, whose latest order now buys enough for only 83 children rather than 300.

In 2024, deliveries of therapeutic milk and ready-to-use therapeutic food (RUTF) from Europe to Somalia typically took 30-35 days, increasing to 40-45 days in 2025 as vessels diverted around Africa owing to security threats in the Red Sea.

Since the United States and Israel attacked Iran on Feb. 28 and Iran closed the entrance to the Gulf, a lack of ships has pushed that out to 55-65 days, said Mohamed Omar, head of Health and Nutrition at Action Against Hunger (ACF) in Mogadishu.

Meanwhile, in ⁠Somalia, the IPC global hunger monitor says more than 2 million people are now in the “Emergency” phase, one level before famine.

Admissions of severely malnourished children in January-March to health centres supported by ACF were up 35 per cent from last year.

Staff at Daynile General Hospital, which is treating 360 children for wasting, said on April 20 that they barely had enough supplies for the week.

“Some children’s nutritional status has already worsened,” said health and nutrition supervisor Xafsa Ali Hassan.

Somalia was not among 17 impoverished nations ⁠singled out to receive a share of this year’s funds allocated to the UN Office for the Coordination of Humanitarian Affairs (OCHA) by the U.S., which has made the most drastic cuts among foreign aid donors.

OCHA says more than 200 health facilities have been closed and mobile teams disbanded.

It said in December that over 60,500 severely malnourished children had gone untreated as a result, and that the number could rise to 150,000 if funding gaps persisted.

Then, ⁠when the Iran war erupted, domestic fuel prices leapt 150 per cent.

“Somalia is really hard hit by the Iran war because people are still reeling from the impact of the previous drought,” said IRC’s Abdulkadir.

“It’s very difficult for people to absorb these shocks.”

OCHA has appealed for 852 million dollars from global donors to stave off a full-blown famine.

This is far below the 1.42 billion dollars it requested last year – yet it has still barely received 14 per cent of this amount.

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