“In the face of unprecedented difficulties facing the oil market, it is of the utmost importance that all the signatory countries fully implement the production reduction agreement and that the objective is to ensure a compliance arte of over 100%,” insisted minister of Energy and head of the OPEC Conference, according to a communiqué of the Energy Ministry.
This call occurs on the eve of the implementation of the historic production reduction agreement concluded on 12 April 2020 between the 23 countries signatory to the Declaration of Cooperation which will enter into force tomorrow May 1, 2020.
In this respect, Arkab affirmed that “Algeria is ready to reduce its production as from May 1, in accordance with the Agreement” while thanking the other producing countries which announced voluntary cut of their output.
He noted that “the impact of the coronavirus crisis on the oil market is severe and had led to very low prices and high inventories.”
Remaining optimistic, he considered that “the gradual rise in oil demand due to the resumption of world economic activity on the one hand, and the reduction in supply on the other hand, will lead to a gradual stabilization of the oil market and an upward trend in prices.”
Acknowledging that there are many uncertainties and that volatility will remain high in the coming weeks, he reaffirmed that OPEC continues to monitor developments in oil market conditions and prospects, and that it is ready to take whatever action is necessary, in a cooperative and consensual manner with its partners in the Declaration of Cooperation.
During the 10th extraordinary ministerial meeting of OPEC, held on 12 April, the participants agreed to cut their global oil production to 9.7 mb/day, as from 1 May 2020 for an initial period of two months.