OPEC adopts Algeria’s proposed plan for a cut in its overall oil production

date 2016/11/30 views 454 comments 0

icon-writer By: Mohamed Lahouazi /*/ English Version: Med.B.

Members of the Organization of Petroleum Exporting Countries "OPEC" adopted, at the close of a meeting in Vienna, on Wednesday, a decision to curtail the bloc’s global oil production by 1.2 million barrels per day, starting from January 2017.

"We agreed to lower OPEC's output by 1.2 million barrels to limit production to 32.5 million barrels a day as from 1 January 2017," OPEC's president announced in a press conference following an ordinary meeting of the organization.    

A knowledgeable source at OPEC, told "Reuters," that the members of the organization endorsed Algeria’s proposed plan for a slash in the cartel’s overall oil output by 1.2 million barrels per day in a bid to stabilize and hopefully shore up oil prices on the international market.

Algeria put forth a proposal meant to reduce the organization’s oil output to 1.2 million barrels per day, during the 171st OPEC ministerial meeting held Wednesday November 30th in the Austrian capital Vienna.

Algeria, as an active member of "OPEC" has proposed to define a new ceiling for oil production to be set at 32.5 million barrels a day, compared with 33.6 million barrels per day at present.

The final text also points to Algeria’s proposal, designed to convince countries outside the OPEC Organization, particularly Russia, to lessen their own oil output in the range of 600 thousand barrels per day.

The Vienna agreement, which also calls for a reduction of about 600,000 barrels a day by non-OPEC countries, pushed up Brent crude by as much as $4.08 to $50.46 a barrel. Still, oil prices remain at half their level of mid-2014.

  • print