Algerian Diplomacy Is Moving For $ 10 A Barrel

Countries of oil producing and exporting to Algeria are focusing, with the start of the countdown to the International Energy Forum that will be held in September, which will also be the opportunity to hold an informal meeting to discuss the problem of price and production, and what the international oil market is noticing, as the statements of presidents and ministers and the encrypted messages between Saudi Arabia and Russia, are continuing weeks before the official deadline, at a time when experts say that Algeria would only use the $10 a barrel, in light of the continued glut of oil supply and the weak global demand, which prevents the thesis of rising prices by more than $ 60 a barrel on most, during the next two years.

Expert in Energetic Affairs and the Central Director in charge of prospective and strategy at the Energy Ministry earlier, Moustapha Ben Khamou, told Echorouk that Algiers Summit, will be held for diplomatic purposes, and will try to bring the views and positions between the oil producing and exporting countries, but on the other hand, he considers that the market environment in the current circumstances, and in the face of the rising offer and increasing demand, and the glut of shale gas, which is controlled by America, makes the prices impossible to rise to more than $ 60 a barrel, which would open the door before the Algerian diplomacy to manœuvrer for $ 10 at the most in the barrel, saying: “I was a former director of the prospective for years at the Department of Energy, and I am confident that over the next 30 years the price of barrel will not increase to what it was previously”.

“Returning to the financial goodwill requires reaching the price of $ 80 per barrel of oil, while the affluence will not be under $ 100 per barrel, which would not be achieved in the coming years, this is why Algeria will try, at least, to bring the positions of the participating countries, during an informal meeting on the sidelines of the international oil summit, relatively to curb the crisis that was caused by the United States. The only solution is the return of the oil market to the normal conditions is that America should stop shale gas production, and this is impossible”.

Saudi Foreign Minister, Adel al-Djubeir, said on Friday, he is optimistic with the move of oil producers towards the adoption of a common position regarding the crude oil production. We begin by holding a meeting for ideas, but currently, there is a work that is underway and we will see what will happen in Algiers meeting, and I am optimistic. Eventually the offer, the demand and market forces will control the oil price, although there may be some arrangements that are related thereto between the producers, but not at the expense of Saudi Arabia”.

In this context, Russian President, Vladimir Putin, expressed on Friday, his hope to reach an agreement to stabilise oil production, which prices noticed a collapse since two years ago, and he said: “It would be right to find a compromise”, and he also defended Iran, saying: “Iran started from a very low level that is linked to penalties against this country, and it would not be fair to leave it at this level that is associated to the penalties”.