The Algerian Energy Minister, and former President of OPEC, has warned of a further oil price collapse if OPEC doesn’t act promptly to slash production during its next meeting on March 15th.
According to Algerian newspaper Al-Khabar, Chakib Khalil said in a press conference that the 4.2 million bpd production cuts carried out by OPEC member states over the last few months have helped oil prices to stabilise around the $40 mark and not plunge to $20 a barrel.
“Speculators tends to get out of the market every time the oil demand declines; slashing production by 4.2 million bpd has helped maintain the stability of oil prices and then improve them,” he said.
Khalil also added that the current prices are the same witnessed during the period 2001-2007.
“OPEC will face challenges if the financial crisis persists, as a surplus and no demand will push oil prices to plunge,” he said.
