The Minister of Energy and Mines, Mohamed Arkab, affirmed that the decision to continue reducing oil production by the Organization of Petroleum Exporting Countries and its allies outside the organization (OPEC +), taken today, Sunday, will allow facing up to market volatility.
Mr. Arkab said in a statement to the press after the conclusion of the proceedings of the 34th ministerial meeting of the organization, held via video conference that “the fundamentals of the global oil market are currently going through fluctuating stages, and therefore our decision (regarding the level of production cuts) came to the market fluctuations.”
He added that over the past weeks, the accumulation of several factors that negatively affected price levels and the stability of the oil market has been recorded, as fears of economic recession, the slowdown of the Chinese economy, high inflation rates and the strong dollar had an impact on the prospects for the growth of oil demand in the world.
Participants in the 34th ministerial meeting of the OPEC + group agreed to continue working with the reduction plan approved at the last October 5 meeting in Vienna, providing for a reduction of two million barrels per day, as from November, which means maintaining the same production quotas established at the previous meeting.
This decision comes in “continuity of the joint efforts within OPEC + to ensure the stability and balance of the global oil market,” according to the minister, who indicated that “the OPEC + group will remain very cautious for any developments related to the fundamentals of the oil market.”
In implementation of the decision of the OPEC + group taken today, Sunday, Algeria’s share of oil production will stabilize at 1.007 million barrels per day, as indicated by the Minister of Energy and Mines.
Prior to the 34th ministerial meeting, Mr. Arkab had participated, via videoconference, in the proceedings of the 46th meeting of the Joint Ministerial Monitoring Committee (GMMC).
He also participated yesterday, Saturday, in the proceedings of the 185th meeting of the “OPEC” conference, which was also held via video conference.
During this meeting, the ministers of the member states of the organization discussed issues related to the management of the organization and its functioning, as well as the current situation of the oil market and prospects for its development, in the short and long term.