Oil output cut to reach the target in February
Statement was made by Algeria’s minister of Energy, Noureddine Boutarfa. OPEC and non-OPEC countries have decided to lower their oil output this year in 1.8 million barrels per day.
São Paulo – The target of reducing oil output in almost 1.8 million barrels per day this year, announced in December by OPEC (Organization of the Petroleum Exporting Countries) and non-OPEC countries, should be met in February said this Thursday (26) the minister of Energy of Algeria, Noureddine Boutarfa, according to news outlet Algérie Presse Service (APS).
The organization’s member countries committed to an output cut of 1.2 million barrels per day, while other 11 nations committed to a cut of 558,000 barrels per day. “The reduction has already reached 1.5 million barrels per day,” said the minister. Algeria is an OPEC member.
The first assessment meeting of the agreement between these countries took place last weekend in Austria, and the countries have stated that they are “highly committed” to reached the target. The next assessment meeting will be held in Kuwait in March. “The commitment level of all involved countries will be assessed,” said Boutarfa.
The countries decided that the output cuts would begin on January 1 and last six months. The goal is to increase and sustain the prices of the commodity after a long period of significant decline.
Also this Thursday, Sonatrach, Algeria’s state-owned oil company, reported that Algerian exports of gas could reach 56 billion cubic meters in 2017, against 54 billion of cubic meters in 2016. The forecast includes natural gas and liquefied natural gas (LNG). Gas accounts to 30% of all hydrocarbon exports of the country.
*Translated by Sérgio Kakitani