The International Monetary Fund raised its expectations regarding the price of a barrel of oil needed to equate the Algerian budget for the year 2020 to 157.2 dollars after it was at the level of 14.4 dollars in 2019, which are data dictated by the Corona pandemic and the decline in crude oil prices during the current year, which contributed to further depleting the budget.
According to data of the International Monetary Fund published on its website, the decline in oil prices this year is remarkable, especially in light of the spread of the COVID-19, which has significantly raised the price of a barrel of oil necessary for Algeria to achieve an equation for its annual budget compared to its expenditures, indicating that the requested price was in the range of $101.4 in 2018, $ 104.6 in 2019 and $91.4 in 2017.
IMF’s previous expectations indicated that the price of a barrel of oil required to help Algeria equate its general budget is estimated at $ 91 per barrel, and these are expectations that have gone unheeded by the Corona pandemic and the accompanying collapse in the price of black gold.
Moreover, these expectations for the price level of a barrel of oil needed for Algeria to equalize the budget were dictated by the measures of the “OPEC +” coalition to reduce production, which prompted Algeria to reduce its production by about 815.000 barrels per day, which is the lowest in decades.
Last week, oil prices fluctuated between high and low. Brent North Sea crude (the oil of the Algerian Sahara Blend crude) closed trading last Friday at $ 41.92 a barrel, while US West Texas Intermediate (WTI) closed at $ 40.25 a barrel.
Observers are cautiously looking at the reaction of international markets at the opening of the weekly trading on Monday morning, given the confirmation of a second wave of the COVID-19 pandemic, and the extent of its impact on economic and commercial activities around the world, and whether the affected countries will resort again to closure and quarantine measures, or will they continue the economic activity and cope with the virus.