The Algerian energy minister has said that the 12 member states of the oil cartel OPEC are applying production quotas in a satisfactory fashion and suggested that as a result the oil price may remain above US$50 a barrel.
Speaking to reporters at Biskra in southeast Algeria Chakib Khelil said that due to quota compliance OPEC “has made it possible to stabilise the price of crude on the international market.”
Khelil played down an increase in price saying it would be “difficult” in the current economic climate, but believed that between $50 and $55 a barrel was achievable.
The minister’s comments come after oil has had enjoyed a recent resurgence to over $50 a barrel. Many different reasons have been given for the rise in price such as the recent G20 summit and cuts in production by OPEC member states.
Many oil producing nations, including Saudi Arabia and the UAE, have quoted a price of $70 to $75 a barrel saying that this allows them to invest in infrastructure as well as exploration and development. However, this figure appears fanciful for the forseeable future.Â
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