Algeria’s Saharan Blend Price Settles At Highest Since April
Prices of Algerian oil “Saharan Blend” climbed again above the level of $80 a barrel, a week after the tripartite Russian-Saudi-Algerian initiative to cut production to preserve the stability and balance of the international oil market.
The Oilprice.com data, which specializes in the prices of various types of crude oil in the world, indicates that Algerian oil reached the level of $81 a barrel on July 14, which is its highest level since last April, when it then exceeded $86 a barrel.
The prices of most of the member states of the Organization of Petroleum Exporting Countries (OPEC) rose above $80 per barrel, similar to Angolan Girassol, which reached $82.31, and Saudi Arab Light, which reached $83.95.
The recovery of oil prices comes directly after measures from Saudi Arabia and Russia, especially by cutting significant production, amounting to 500.000 barrels per day, as of August, in addition to Algeria, whose step was more than symbolic, and was a sign of its support for decisions to cut production and the cohesion of the “OPEC +” alliance.
As it is known, Algerian oil is considered a light raw material and is highly required by oil refineries. It dominated for several months during 2022 the ranking of the most expensive raw materials in the world immediately after the outbreak of the Russian-Ukrainian war, given the high demand for it and also after Sonatrach raised its selling price in the international market.
“Sahara Blend” is also considered a very light type of oil and contains very low amounts of sulfur, which facilitates its processing alone or in mixture with other crude oil, and obtaining its derivatives such as gasoline and jet fuel.
According to one of the previous officials in Sonatrach, Algerian crude is classified as one of the required types given the energy it liberates upon combustion, as it is characterized by a high calorific value that is emitted during complete combustion.
In general, Brent North Sea crude prices settled at $79 a barrel at the beginning of weekly trading, Monday, and retreated slightly from the levels they reached at the end of last week, when they exceeded $80 a barrel, while US West Texas crude Intermediate crude, in turn, settled at $74 a barrel.
The Organization of the Petroleum Exporting Countries and their allies, together known as OPEC+, recently agreed to extend their oil production cuts through 2024 and Saudi Arabia voluntarily agreed to extend its production cut through August.
