OPEC oil quota cuts being respected: Algeria

Oil producing countries are applying production quotas “satisfactorily” the Algerian energy minister said Sunday, suggesting that the price might return to between 50 and 55 dollars a barrel.

• Respect for the quotas by the members of the Organization of the Petroleum Exporting Countries (OPEC) “has made it possible to stabilize the price of crude on the international market,” Chakib Khelil told reporters at Biskra in southeast Algeria, according to the APS news agency.

  Given the global economic crisis it would be “difficult” to increase prices because of falling world demand. But the present system could “lead to a return of 50 to 55 dollars a barrel.”

  In March OPEC, which produces 40 percent of the world’s oil set a production limit of 24.84 million barrels a day. Since September it has cut production by 4.2 million barrels a day to stop prices falling further.

  In June 2008 a barrel was fetching almost 150 dollars but by December the price had collapsed to 32.4 dollars. So far this year the price has fluctuated between 40 and 50 dollars.

  OPEC sees 75 dollars as the price at which investment in exploration and production becomes profitable.