Economy

Energy Minister: Oil prices to stay at 60 dollars during the first half of 2021

Minister of Energy, Abdelmadji Attar, estimated Tuesday in Algiers that oil prices are likely to stay around 60 $ a barrel during the first half of the current year, stressing that OPEC+’s decisions and other factors were behind the last crude prices rise.

On the sidelines of the extraordinary meeting of Ministerial Council of the Organization of African Petroleum Producing Countries (APPO), Mr. Attar stated that crude prices may remain at the level of 60 dollars/barrel during the first half of 2021, adding that prices may rise even more, especially in the case of an important geopolitical event.

In this regard, Mr Attar added « We were excepting this prices rebound following OPEPC+ decisions that allowed oil prices to rise”.

Energy minister explained that many other factors impacted oil market, such as Covid 19 vaccination campaigns in most oil exporting countries.

The minister asserted “We are optimistic concerning market development given the international situation and oil consuming countries members of the Organization for Economic Co-operation and Development that witness a decline in their stocks” adding that crude prices will remain stable around  60 $ during the first half of 2021, especially in case of an important geopolitical event occurrence.

Algeria energy minister also explained that prices development during the first half of 2021 depends on world vaccination campaigns success against Covid-19 pandemic and depends also on economic recovery in oil consuming countries.

In this context, Mr. Attar did not rule out price hikes above $ 60 a barrel, calling «To be careful in these expectations.”

Answering a question on Algeria oil and gas production decline, the Minister confirmed that Algeria oil production level complies with OPEC+ level set within the framework of last December agreement, adding that “Algeria respects 100 % OPEC+  oil-cuts  agreement”.

In the field of gas, the minister explained that the country is in full capacity and fully responds to national needs, especially in winter season. As for the levels of exported quantities, Mr. Attar emphasized that they depend on international market’s needs.

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