Algerian Oil Barrel Above $ 46… Has Government’s Nightmare Ended?

Oil prices rebounded, on Tuesday, in the international market in a way that had not been seen since last March, driven by the economic rescue plan adopted by the European Union, and the stimulating results of the Corona virus vaccine from the University of Oxford, in a way that made the price of Algerian crude exceed $ 46, bringing the reference price to the regular financial law for the year 2020, to $ 50.

The price of Brent North Sea crude in the midday hours of Tuesday, Algeria time, reached $ 44.60 a barrel, an increase of 3.05% compared to the closing session on Monday, which is the highest level since last March, which means that the price of Algerian crude has exceeded $ 46 a barrel, given that its level will always be above the Brent level of 1.3 to 1.5 dollars.

In turn, the US West Texas Intermediate “WTI” jumped by 2.90 percent, by midday yesterday, to reach the price of a barrel to 41.98 dollars, which is also the highest level since last March.

Given these data, the price of oil has come close to the reference price level of the Ordinary Financial Law for 2020, which was at the level of $ 50 a barrel, before being reduced to $ 30 a barrel in the supplementary finance law last June, which means that the national Public Treasury will be shored up by about an additional $ 16 for each barrel.

Followers of this recovery also attributed this rebound to the salutary agreement of the European Union member countries late Monday night to Tuesday, regarding the economic rescue plan after the Corona pandemic, as negotiations continued for several days, in addition to the results that were described as positive for the discovery of a possible vaccine against the Corona virus, which was developed by the University of Oxford, UK, and praised by the World Health Organization –WHO-.

This remarkable rise in the price of the oil barrel, the country’s main source of income, in the absence of ready solutions, would make the government of Abdelaziz Djerad in greater comfort, and the hovering financial nightmare may end, to be in a financial situation similar to the conditions in which it was formed last January, before the beginning of the collapse in oil prices, which was exacerbated by the covid 19 pandemic in our country.

By tracking oil prices at least since last June, their levels have remained above $ 40 a barrel, especially with the entry into force of the production-reduction agreement by the OPEC + coalition last month, which absorbed little by little the excess supply, according to experts, starting from May and then June , through to July.

Consequently, economic experts expect the continuation of the upward trend in oil prices, if the actual marketing of the anti-Corona vaccine is started, especially with Russia’s announcement on Tuesday, that a vaccine has been developed in one of its laboratories, added to an agreement to slash crude production within the framework of the “OPEC +” coalition, which reached the commitment rate of 107 percent, according to Algerian Energy Minister Abdelmadjid Attar.