Algeria proposes setting up an OPEC-non-OPEC committee to assess the energy market in order to strengthen coordination between producing countries, said Wednesday in Vienna the Minister of Energy, Noureddine Boutarfa, in a statement To the press.
The mission of such a committee, if it were to be set up, will be broader than that of the ministerial committee responsible for monitoring the OPEC-non-OPEC agreement, which is solely responsible for examining the level of compliance with producer countries’ commitments, Explained Mr Boutarfa, who is in the Austrian capital to take part in the meeting of the joint OPEC and non-OPEC joint monitoring committee, as well as at the 172nd OPEC Ministerial Conference and the OPEC and non-OPEC Ministerial Conference.
“We need to evaluate the market in a more global way and look at the impact of all energy offerings, notably renewables and shale gas and oil, so that we can discuss between producers and see what measures can be taken Reasonably taken, “he said.
Mr Boutarfa stressed in this connection that several countries, notably Russia and Saudi Arabia, saw the Algerian proposal “a good eye” and found it “interesting”.
Regarding the production reduction agreement signed last December in Vienna by both OPEC and non-OPEC countries, the minister noted that he had begun to influence the physical market but should continue beyond December 2017 to fully goals.
“The results of the agreement took a long time, and the price increase in the first three months of 2017 is explained more by the psychological effect of the agreement than by a real market effect. Have not really changed during these months, but now yes, the physical market is starting to respond, “he said.
According to the minister, the impact of the agreement will be felt more, given the weekly indices of oil stocks that have dropped sharply as well as the expected increase in demand in the coming months.
This trend can be explained in particular by the “appreciable” level of compliance with the commitments of the countries concerned by the agreement, which has been in force since January 2017, and reached 92% by non-OPEC producers and 100% by OPEC producers.
“This is a very positive result,” he said, reiterating that “some believed that the agreement would not be respected.”
The objective “immediately” is to maintain oil prices between $ 50 and $ 60, Boutarfa said, explaining that in Algeria, “we have always said that with this (range of Would be happy. We will see later how shale oil will evolve “.
“The market is now waiting for us to go beyond December 2017,” he said, highlighting the need for producer countries to be “pragmatic, dynamic, proactive, Listening to the market and adapting very quickly “.
And it is in this sense that Algeria proposes the setting up of an OPEC-non-OPEC energy market assessment committee to strengthen coordination between producing countries.