OPEC Helps Algeria Get Over Embarrassment

OPEC helped Algeria get over embarrassment in the reduction of oil production, and reaffirmed its commitment to the agreement that it reached during the meeting, which was held in Algiers last September and which described as “historic” since the beginning of the oil crisis two years ago.

After an ignition of statements between the oil ministers of the countries that are active in the oil market, and the question of many analysts in the “OPEC” about the production capacity cut, and application of the binding decisions that came out of Algiers meeting in September, the statements of the General Secretary of the Organization of Petroleum Exporting Countries “OPEC”, Mohammed Barkindo, revived the Algiers agreement when he said in a statement that was reported by Arab and international news agencies, on Monday, during a conference in Abu Dhabi, saying that the market will regain its equilibrium in 2017 with the implementation of the agreement.

Without addressing the details, the OPEC’s General Secretary gives assurances that the Russian position, which is the non-member is positive and clear in this regard; “Moscow with us, and i will not reveal all the details.”

OPEC officials met in Vienna last month, to put the details of Algeria’s plan to cut production, but they failed to reach an agreement, as the next meeting of OPEC ministers will be held on 30 November.

OPEC official statements contributed in rising the oil prices to more than one percent, as the price per barrel jumped from $ 45 to 46.16.

OPEC’s comments come after those that were made by the Algerian Energy Minister, Noureddine Bouterfa, on Sunday, when he mentioned that the production quotas for OPEC countries will be determined during its regular meeting on November 28, in Vienna.

Bouterfa said: “There is no retreat in the terms of the Algiers Agreement, and we apply what is in it, and the high-level technical committee that was created after the Algiers Agreement have begun work on this agreement. Technical committee had addressed a number of technical elements”.

Committee also suggested that the agreement should last for a year from January 2017 with a review at the end of every six months.

Bouterfa called for waiting for the next meeting where the organization will determine production quotas for each member state of the organization, adding; “Each country will apply reduction, according to the size of its current production”.