Algeria rejects OPEC policy

Algeria did not hide its dissatisfaction over the OPEC’s policy and proposed to stop Gulf countries’ monopoly on production. It also called to review and put an upper limit to oil referential price.

Algeria wants the OPEC to take measures to support prices such as a price target or floor and a return to OPEC’s quota system. Iraq and Iran approved the suggestion, Reuters reported.

Algeria said in its suggestion that “OPEC should be prepared to establish and defend a price floor, in particular, and to accept a temporary trade-off between lower market share and higher revenues.”

It also suggested to “Maximize long-term petroleum revenue of member-countries and safeguard their interests, individually and collectively, while enhancing the role of oil in meeting future energy demand.”

Iran supported Algeria’s suggestion, saying “It is our recommendation to agree upon a fair and reasonable price (band) then try to support it as long as this price seems a fair and reasonable price.”

According to the same source, these differences over short-term policy are informing the group’s updating of its long-term strategy, the document indicates, and may not bode well for a harmonious meeting on Dec. 4, when OPEC oil ministers meet to review output policy.

Saudi Arabia did not make a comment on the remarks.