L’Expression: Economy – Algeria will withdraw 2,000 bpd

Back to a “flash” meeting. Very few experts saw the blow coming. The verdict was expedited. In a few minutes, the 13 member countries of the Organization of the Petroleum Exporting Countries and their 10 non-cartel allies, including Russia, decided to lower their global oil production next October by 100,000 barrels/day. A first since the implementation of a gradual increase plan that they designed during their 16th Ministerial Summit which took place on April 1, 2021. OPEC and its partners had decided to put 350,000 barrels per day additional on the market, in May and June, 441,000 from July 1, then 400,000 per day in August and September before rising to 432,000 barrels/day in June 2022, then 648,000 barrels/day in July and August, then barely 100,000 per day, in September. Before the rather unexpected “flash” decision of OPEC+, on the part of many OPEC+ specialists, there was rather agreement on an increase in minimum production of the same type as that decided last month (100,000 b/d). Speculation was rife. “It is not entirely certain that OPEC+ will agree to a further increase in quotas of 100,000 barrels per day”, as in September, declared Caroline Bain, of Capital Economics. “In light of the recent decline in oil prices…we do not rule out flat production…” she added. The question of a decline in the group’s production, which would be the first since the drastic cuts made to cope with the collapse in demand during the outbreak of the Covid-19 pandemic, will rather arise during the next meeting in October, said Matthew Holland of Energy Aspects. Saudi Arabia had however announced the color. The leader of the Organization of the Petroleum Exporting Countries denounced the truncated information intended to lower the price of black gold. Having established this observation, the message was very clear. “OPEC+ had the means to cut production at any time in order to face the challenges of an oil market that had fallen into a vicious circle of low liquidity and extreme volatility,” warned Saudi Energy Minister Abdelaziz. bin Salman, in an interview with Bloomberg, reported by the Saudi press agency SPA. A determined tone echoed by Algeria, which showed its solidarity with the statements of the said minister. Algeria stands ready, with all of its OPEC+ partners, to take the necessary measures to maintain the stability and balance of the international oil market, the Minister of Energy and Mines. Amena Bakr, of the firm Energy Intelligence, who even ventured not to overinterpret the words of the Saudi Minister of Energy, who only “emphasized that volatility is bad for the market”, according to her. It took him badly. The “23” joined the act to the word. Only Bloomberg hit the nail on the head. OPEC + would discuss a production cut of 100,000 barrels per day at its meeting on Monday (the day before yesterday, Editor’s note), the American agency had reported. Representatives of the 13 members of OPEC and their 10 allies have agreed to “return to August quotas”, a drop of 100,000 barrels, compared to September, announced Monday, the Alliance, which has held by videoconference, stressing that it left the door open to new discussions, before the next meeting on October 5.

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