Algeria has announced a further voluntary reduction in oil production of 20,000 barrels per day to reach 940,000 barrels per day during August. This comes in compliance with the agreement to limit the production by the 13 members of the Organization of Petroleum Exporting Countries (OPEC) and 11 other non-OPEC members, known as OPEC+.
This was announced in a speech by the Minister of Energy and Mines Mohamed Arkab on Friday, during his participation in the 47th meeting of the OPEC Joint Ministerial Monitoring Committee (JMMC) and others, which was held virtually.
The OPEC+ alliance includes OPEC and allies, including Russia, and pumps about 40 per cent of the total global crude oil production.
Arkab shared: “As we announced at the beginning of July, Algeria reiterates its decision to proceed with an additional voluntary reduction of 20,000 barrels per day in its production to reach 940,000 (barrels) per day in August.”
On Thursday, an official source in the Saudi Ministry of Energy announced that the Kingdom: “Will extend the voluntary cut of one million barrels per day, which began in July, for another month,” according to Saudi Press Agency.
The source added that the reduction: “Includes the month of September, with the possibility of extending, or extending and increasing this reduction. Thus, the Kingdom’s production in September 2023 will be approximately nine million barrels per day.”
On Thursday, Russia issued a press statement announcing: “The continuation of voluntary cuts to its oil supplies next September, but by 300,000 barrels per day due to the decline in its exports,” according to what was published by the local TASS news agency.
On Friday, oil prices rose above $85, supported by the OPEC countries’ decision to extend production cuts.
Arkab expressed his satisfaction with the OPEC+ countries’ respect for the required production level and the loyalty shown by the countries that voluntarily announced additional production cuts.
The virtual meeting focused on assessing compliance with production limit commitments by the countries of the Declaration of Cooperation (between OPEC and non-OPEC members) for May and June 2023.
The Algerian minister clarified: “The decisions we made in OPEC+, collectively and individually, led to reversing the downward trend in oil prices, reducing volatility and restoring stability in the global oil market.”
“Nevertheless, we remain cautiously optimistic and very vigilant of its development in the short term,” he added.
Arkab explained: “The state of anticipation is due to uncertain economic growth in many regions due to the monetary tightening policies of major central banks, high interest rates and inflation.”
The OPEC+ JMMC is scheduled to meet again on 4 October to examine compliance with its commitment to cut production and assess the international market situation.
Source : Middle East Monitor
