Algeria – Anatolia – OPEC President, Algerian Energy Minister Mohamed Arqab, said on Sunday that the organization expects the level of oil prices at $ 40 a barrel by the second half of this year.
This came, in an interview with Minister Mohamed Arqab, with Algerian state radio.
Arqab explained that oil prices will rise during the next May and June to an average of $ 35 a barrel, in conjunction with the implementation of an agreement to reduce production.
And two weeks ago, the (OPEC +) alliance agreed to reduce oil production by 9.7 million barrels per day, starting from next May for two months, in an agreement described as the largest historic production cut.
Production cuts will be reduced to an average of 8 million barrels per day, from July until the end of 2020, followed by an agreement to reduce production cuts to 6 million barrels per day, beginning in early 2021 until April 2022.
The Algerian Energy Minister indicated that the markets started to give positive signals in the past few days, after the big downturn in the middle of last week.
Erqab justified his expectations of the start of price recovery, in addition to the agreement to reduce production, by quarantine measures imposed by the Corona virus in several countries, including China and Europe.
Algeria holds the rotating presidency of the Organization of the Petroleum Exporting Countries, until the end of December.