OPEC member Algeria believes the current global crude oil price is fair and hopes this level will remain unchanged for a long time, the CEO of the country’s state energy firm Sonatrach said on Sunday.
“Oil is currently around $75 a barrel and we (producing countries) think that it’s the fair price,” Sonatrach CEO Abdelmoumen Ould Kaddour was quoted as saying by state news agency APS.
The situation remains “positive” for both producers and consumers if prices stayed in the $70-$80 range, Kaddour said.
“We have to find a fair environment and that’s where we are currently,” he said, hoping this price could last long enough to help exploration investment recover, according to APS.
Algeria relies heavily on energy earnings, which account for 60 percent of the state budget and 94 percent of total export revenues.
It has cut spending and delayed several infrastructure projects since crude prices declined in mid-2014.