There are 7 hypotheses and 6 drawbacks to face “OPEC” meeting in Algeria

The Informal meeting of the “OPEC” Organization to be held on 27 September 2016 in Algiers, swings according to analysts, between 7 hypotheses meant to ensure the success of the encounter notably by bringing the “oil barrel” to safety, and between a string of drawbacks that may adversely scuttle the forthcoming meeting, which is dubbed as most important ever since the outbreak of the 2014 severe oil crisis which has up to now gripped the much-volatile world market.

Experts point to the need for the Algerian diplomacy to bounce back onto the world energy scene after a long slumber, but without overloading its ongoing efforts for that matter.

Energy expert Mahamah Bouziane, told to this effect “Echorouk” that one of the signs of the success of a meeting of OPEC in Algiers, would be to define an ambitious oil output ceiling during the talks , as everyone believes, he said, that it will be a consultative meeting and not mandatory, especially as it will be held on the sidelines of the International Energy Forum, known  known by all as non-mandatory, adding that the upcoming the meeting would be geared to ironing out divergences between some OPEC members and striving to achieve a salutary consensus.

The expert added that a fifth indicator is the initiative led by Venezuela, which is a new boosting asset for the position of Algeria, and considered the endeavor of Qatar, even though the Doha energy meeting failed a few months ago, to be aimed at a “win-win” situation similarly to Algeria’s stand, especially that Qatar has now moved away from selfishness and chose to accept to sit down at the table of negotiations and dialogue.

On the other hand, our interlocutor that the most significant drawback likely to hamper the proceedings of the OPEC Algiers meeting  is to be found in the US Agency’s report which includes a review of the long-term plan for the stocks of energy, which is the point at which the balance of power for its management may fluctuate by reviewing the stocks of 700 million oil barrels to 530 million, thus causing further  world market disruptions.

Meanwhile, the Secretary General of the Organization of Petroleum Exporting Countries (OPEC) Mohamed Sanusi Barkindo expressed Sunday in Algiers “optimism” about the results expected from OPEC’s informal meeting on 27 September in Algiers.

Barkindo, who started Saturday a visit to Algiers, made this statement following his meeting with Energy Minister Noureddine Boutarfa.

 With regard to OPEC’s ability to reach a decision during this meeting, scheduled on the sidelines of the 15th International Energy Forum (IEF), in case of convergence of views between member countries, Barkindo said he was “optimistic” about the results of this meeting, hailing Algeria’s efforts to bring closer views of OPEC and non-OPEC countries. He also hoped that these efforts will lead to positive results. 

In this regard, he stated that OPEC Energy ministers may hold an extraordinary meeting if they reach a consensus during the Algiers informal meeting.

Speaking about decision-making process within the OPEC, he stated that an informal meeting is not a decision-making meeting, adding that an informal meeting remains so until ministers of the member countries realize the need to take decisions.

At this time, he explained, an informal meeting may decide to hold an extraordinary meeting so as to take decisions.

“Therefore, we suggest that the Algiers informal meeting leads to an extraordinary meeting in order to take decisions” likely to stabilize oil price, OPEC SG said.