OPEC members will share oil quotas within 40 days

Once the OPEC’s unofficial meeting was finished in Algiers, its members started talking about sharing 23.5 million barrels among 13 counties. Iran and Saudi Arabia had to cut production so that three nations would “recover.” A working team will meet in October to decide in each quota.

Mahmah: Saudi Arabia and Iran will cut production

Oil expert Bouziane Mahma expects that the operation will be conducted in flexibility. He considered Iran’s decision to reduce its quota to 3.8 million barrels from 4.1 million is “historic and positive.”

Libya and Nigeria will have a preferential treatment. “This will not have a big effect as their quota are already low and their production capacity is still incomplete,” he said.

He hailed Algeria’s role in achieving a “historic success.”

Mebtoul: four scenarios surround barrel price until 2019

Speaking about the OPEC’s decisions, oil expert Abderrahmane Mebtoul said there would be almost no conflict between members about quotas which will be redistributed as from November.

He added that a commission of experts was established to deal with those decisions.

“If the barrel price goes up by $5 only, this will have a positive impact on the State’s Treasury. Each time oil barrel price goes down by a dollar, the Treasury loses $300 million,” he also said.

He believes that one of four scenarios would happen between 2017 and 2019. It will depend on world growth.

“If the economic growth rate is high, the barrel price may exceed $70 in 2009. If the rate is medium, the price may reach $60. If the rate is low, the price will be between $45 and $50,” he said.