Oil barrel at $25 and Algeria is under shock

The government seeks new resources to fund its budget as oil price Wednesday collapsed to less than $25. Experts warn against serious repercussions and expect strict measures to tighten the belt.

The oil barrel price reached its lowest level ever since the 1990’s.

Sonatrach’s former CEO Abdelmadjid Attar described the oil current price as “catastrophic,” saying the government has never expected it.

“This situation even harmed the US and I don’t think that this price will be maintained for a long time,” he told Echorouk.

Speaking about the barrel cost, he said he does not think that it costs $23. “I believe that its costs is estimated between $16 and $18. It can be less in some fields in Hassi Messaoud. The oil market current situation is not good for any country except the Middle East.”

Economy expert and former executive at Sonatrach Abderrahmane Mebtoul said Algeria’s incomes will not exceed $10 billion if oil price reached $30.

“The Treasury relies on Sonatrach by 70 percent,” he added.

He believes that the government will ask for debts from the International Monetary Fund in 2018. “Even farmers on whom we rely to be an alternative solution are shocked of drought. We need to find a solution. We should not waste time.”