Algiers – The Minister of Energy and President of the OPEC Conference, Abdelmadjid Attar, affirmed Tuesday in Algiers that the Organization is closely following the current developments of the oil market, in order to take with the participating countries of the Declaration of Cooperation the “appropriate” measures, not excluding the option of delaying the increase in production planned for the beginning of 2021, a statement from the ministry said.
“In a statement to the press about the situation of the oil market and its prospects for 2021, the Minister of Energy and President of the OPEC Conference, Mr. Abdelmadjid Attar, said this Tuesday, November 3, 2020 that the ‘OPEC was closely following the current developments and balances in the oil market, both from the point of view of demand and supply, in order to take, with the participating countries of the Declaration of Cooperation, the appropriate measures at the appropriate time ” , said the same source.
Citing a backdrop of sharply slowing growth in oil demand, Attar said the market will have difficulty absorbing the increase in production expected in early 2021.
“Faced with the sharp upsurge in the COVID-19 pandemic which is affecting the main economies of the northern hemisphere, particularly in Europe, the international oil market is disrupted by the increase in uncertainties,” he also noted. .
In addition, the President of the OPEC Conference observed that “the restoration of containment measures aimed at limiting the spread of the epidemic, however beneficial it may be, could slow down the economic recovery expected for the coming months and therefore, reduce the prospects for the growth of world oil demand ”.
As a reminder, the Organization of the Petroleum Exporting Countries and its allies of non-member producing countries (OPEC +) had agreed to reduce production by 9.7 million barrels / day as of May 2020 and by 7.7 million barrels. / day from early August to late December 2020 then 5.8 million barrels / day from January 2021 to April 2022.
This agreement allowed oil prices to start rising again to stabilize in recent months around 40 dollars a barrel.