The OPEC+ alliance is racing against time to ward off the collapse of the oil market

The OPEC+ oil alliance countries rushed to take urgent measures, in an attempt to save the oil market from collapse, in light of the continued decline in prices for the third consecutive month, amid fears of a decline in demand amidst uncertainty and pessimistic indicators about the performance of the global economy.
The Ministry of Energy and Mines had stated, in a statement published on Thursday, that the oil ministers of eight OPEC+ member states had decided to postpone the gradual increase in oil production for two months, that is, until December 1.
This decision was taken during a remote meeting in which Minister Mr. Mohamed Arkab participated, according to the source, explaining that this meeting brought together the oil ministers of eight OPEC+ member states, namely Algeria, Saudi Arabia, the United Arab Emirates, Iraq, Kuwait, Kazakhstan, Oman and Russia, which are the countries implementing a voluntary production cut.
During this meeting, the statement of the Ministry of Energy added, that the ministers discussed the latest developments in the international oil market as well as compliance with the commitments of the OPEC+ countries to reduce production. The participants also noted that the surpluses produced by some countries in previous months will be gradually compensated starting from this September.
The source concluded that the ministers decided to postpone the gradual increase in production by the eight countries concerned for two months, i.e. until December 1, 2024, stressing that this decision reflects the commitment of the eight OPEC+ countries to maintain the stability of the global oil market and support balanced and sustainable market conditions.
In this context, the expert and analyst in energy affairs, Mr. Baghdad Mandouche, explained that this decision came in light of the important transformations witnessed by the oil market since last July, as well as indicators related to the global economy.
Mr. Mandouche, who previously held senior positions at the national  hydrocarbons company Sonatrach, confirmed that demand in India, China and the United States has recently declined, in addition to high commercial stocks in America as well, which led to a decline in oil prices by about $10 during July and August, and the price of Brent crude (the reference oil for Algerian Sahara Blend) is currently around $72 per barrel.
The expert Mandouche added that global demand has also declined due to other reasons related to the rise in energy from renewable sources, especially in Northern Europe, such as Norway, Finland and others, whose production has increased by 15 percent.
According to the latter, the current situation has prompted these countries from the “OPEC+” alliance to postpone the increase in supply, which was previously voluntarily reduced in the market, until next December, in an attempt to seek more stability and make the barrel market at least during the coming period between $72 and $75.
However, Mr. Mandouche also affirmed that the latest analysis by the American investment bank “Goldman Sachs” sees that oil prices will rise during the remainder of this year between 75 and 85 dollars, despite the macroeconomic indicators, given the hopes of a relative increase in the growth of the Chinese economy compared to its current situation.
Mr. Mandouche considered that the issue of the halt in production in Libya will also have a decisive word on oil prices in the coming period, based on the fact that the indicators say that the situation will continue in this country until the end of this year, and therefore the market will still need the 1.5 million barrels per day that Libya was pumping into the global oil supply.