Algeria has decided to further decrease its oil production by 20,000 barrels per day (bpd) in August, bringing its daily output down to 940,000 barrels.
This decision was announced by Energy Minister Mohamed Arkab on Friday during his participation in the forty-ninth meeting of the Joint Ministerial Monitoring Committee (JMMC) of OPEC and non-OPEC countries. Algeria reasserted its resolution to voluntarily reduce its daily production by 20,000 barrels, bringing the total output down to 940,000 barrels per day in August 2023.
A Friday statement from the Ministry of Energy noted that Minister Arkab emphasized that this reduction is in addition to the cutbacks previously announced by Saudi Arabia and Russia for the same period with the objective of stabilizing the oil market.
Arkab also disclosed that the JMMC decided to convene on October 4th to examine adherence to the production reduction commitments of OPEC+ countries and evaluate the situation of the international oil market.
The ministerial statement highlighted that Arkab, along with other oil ministers on the committee, discussed the latest developments observed in the international oil market and short-term prospects.
The JMMC, which has been convening regularly since January 2017, aims to ensure the implementation of voluntary modifications to the production of OPEC member countries and non-OPEC countries that signed the Cooperation Declaration.
At the close of the meeting, the minister noted with satisfaction that “Based on the monthly data provided to us, we have observed that the OPEC+ member countries have fully respected the required production levels. Also, the countries that voluntarily announced additional production reductions last April have completely fulfilled their commitments. The decisions we took in OPEC+, both collectively and individually, have reversed the downward trend, reduced volatility, and restored stability in the global oil market. However, we remain cautiously optimistic and very vigilant of its short-term evolution.”
The minister reaffirmed that even if global oil demand remains at an acceptable level, economic growth is still uncertain in many regions, particularly due to the monetary tightening policies of major central banks, rising interest rates, and inflation. As for supply, the oil market is adequately supplied to meet consumer demand.”
