Mohamed Arkab, Algeria’s Minister of Energy and Mines, clarified on Wednesday the rationale behind Algeria’s recent decision, taken on November 30, to voluntarily and additionally reduce its crude oil production. Algeria’s Decision to Reduce Crude Oil Production This strategic move aims to realign the international oil market with its fundamental principles, rather than leaving it at the mercy of illogical fluctuations caused by speculators, which have contributed to increased volatility and noticeable instability.
A statement from the Ministry of Energy indicated that the reduction in crude oil production would amount to 51,000 barrels per day, spanning from January 1 to March 31, 2024. This decision was made as a precautionary measure in consultation with several OPEC+ members. Minister Arkab emphasized that all necessary measures have been taken in collaboration with the National Hydrocarbon Valorization Agency and the national oil company Sonatrach, along with its partners. The objective of these measures is to ensure Algeria’s full compliance with its commitment to voluntarily reduce production throughout the first quarter of the upcoming year, according to the statement.
Arkab also confirmed that OPEC and its partners in the Declaration of Cooperation remain highly vigilant and concerned with the short-term dynamics of the oil market fundamentals. He did not rule out the possibility of extending these voluntary reductions beyond the first quarter of 2024. Further measures may be considered if deemed necessary to ensure the lasting stability of the oil market.
For more insights into Algeria’s energy policies and market dynamics, visit dzwatch.net, Algeria’s Decision to Reduce Crude Oil Production
