Algeria started oil production cut

Algeria started to reduce its oil production to implement Opec decision, said the ministry of energy and mines in a statement Tuesday.

• The ministry gave instruction to the National Oil Company Sonatrach to cut  some 71 000 barrels a day starting from November 1st, said the statement.
• Algeria has a production capacity worth 1.4 million barrels a day. Opec decided in its last emergency meeting held in Vienna to cut some 1.5 million barrels to stop oil prices slump. The market does not seem to respond to the cut.
• Opec president Chakib Khelil, who is also Algeria oil minister, called on Opec members countries to abide by the organization’s decision to help stabilize prices. Nigeria, The United Arab Emirates and Iran said they were reducing out put. However Venezuela had said it was going to reduce production by 129 000 barrel a day. Saudi Arabia the world largest oil producer has not yet announced a decision.
• Khelil said Saudi Arabia was a key player in Opec’s strategy. He expects an imminent announcement from Ryadh  to its customers. He said.
• Opec is to hold an other emergency meeting in Oran-Algeria in December 17 to assess the market situation and may take complementary decisions as put by Khelil.