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Algeria: OPEC will again reduce oil production if necessary

December 31, 2018 at 10:02 am

OPEC building [Zamoto Media/Facebook]

Algerian Energy Minister said that OPEC and non-OPEC producers will again reduce oil production if necessary during their meeting in April 2019.

Speaking at a press conference in the capital Algiers yesterday, Energy Minister Mustapha Guitouni said producers will wait until the end of the first quarter of 2019 to observe the effect of the reduction in production which has previously been agreed.

Earlier this month, OPEC and some non-OPEC producers including heavyweight Russia said they would cut oil supply by 1.2 million barrels per day (bpd) in an effort to stabilise global markets.

“We will hold a meeting in April, during which we will study the situation of the market and prices. We will reduce production again if necessary,” the Algerian minister said.

He said oil prices are expected to rise in the first quarter of 2019 and will be stable between $65 and $70 a barrel.

Algeria will reduce production by three per cent – 36,000 barrels per day – in line with the OPEC agreement, Guitouni said.

Algeria produces about 1.2 million crude oil barrels per day.

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