BY: Hana Saada
ALGIERS- The 35th OPEC+ Ministerial Meeting recently took place in Vienna, Austria, where the Minister of Energy and Mines, Mohamed Arkab, participated in the Joint Ministerial Monitoring Committee (JMMC) and the OPEC and non-OPEC ministerial meeting. Following the meetings, Arkab emphasized the importance of monitoring the international oil market and its evolving fundamentals.
The global economic situation is expected to grow moderately until the end of the year, with weak growth in industrialized countries, high inflation, and a moderate rebound in economic growth in emerging countries. These factors will impact global oil demand, which is expected to remain relatively contained in the second half of 2023 while the oil market remains suitably supplied.
In light of these discussions, the countries of the Declaration of Cooperation have decided to maintain the production levels agreed upon in October 2022 for the remainder of the year. Additionally, Algeria has announced its voluntary oil output cut of 48,000 barrels per day until the end of December 2024, as a precautionary measure, in coordination with the countries participating in the OPEC+ agreement.
It is important to note that this voluntary reduction will be from the required level of production, as agreed upon at the 35th OPEC+ Ministerial Meeting on June 4, 2023. The decision to maintain production levels and extend voluntary reductions demonstrates the commitment of OPEC+ countries to ensuring a stable and balanced oil market.