As part of efforts to support the stability of the oil market, Algeria is taking an important step that will strengthen the precautionary efforts deployed by OPEC+.
Thus, the Ministry of Energy and Mines indicated that “Algeria has decided to carry out an additional voluntary reduction of 51,000 barrels/day, from January 1, 2024, until the end of next March,” we read. in a press release.
This measure “is part of efforts to support market stability in coordination with the member countries of the OPEC+ group,” the press release added.
Rising to 908,000 barrels per day during the first quarter of 2024, the additional reduction in Algerian production “will be gradually restored depending on the market situation,” specifies the same source.
187th OPEC meeting: the ministry’s press release
Algeria took part in the work of the 187th meeting of the Conference of the Organization of Countries
Petroleum Exporters (OPEC), of the 51st meeting of the Joint Ministerial Monitoring Committee (JMMC) and the 36th OPEC and non-OPEC ministerial meeting which were held on November 30, 2023, by videoconference.
During these meetings, the ministers in charge of oil and representatives of the countries of the
Declaration of Cooperation, OPEC+, exchanged views on the current situation of the international oil market and its prospects for short-term development.
The global economic situation remains uncertain as to its short-term development, particularly due to sluggish growth in industrialized countries, still high inflation as well as a moderate rebound in economic growth in many emerging countries.
Even if global oil demand remains for the moment at relatively appreciable levels thanks to the growth of the transport and petrochemical sectors, the uncertainties weighing on the economic growth of many regions are likely to contain its increase over time. over the next few months.
At the end of the discussions, it became evident that the decisions taken, collectively and individually, to adjust the production of OPEC+ countries during this year were beneficial and demonstrated their effectiveness in achieving balance and market stability.
The 23 countries in the Declaration of Cooperation have therefore decided to reaffirm their commitments to reduce their production for the whole of 2024, in accordance with the levels agreed at the 35th OPEC + ministerial meeting on June 4, 2023.
As a preventive measure and in coordination with several members of OPEC+, Algeria has decided to carry out a voluntary and additional reduction in its crude oil production by 51,000 b/d between January 1 and March 31, 2024, bringing its supply to 908,000 b/d during the period.
Subsequently, in order to support market stability, these deducted volumes will be gradually returned depending on market conditions. As a reminder, this voluntary reduction is in addition to the reduction of 48,000 b/d previously announced in April 2023, which extends until the end of December 2024.
