Algeria increases oil output by 36,000 barrels per day
Algeria has decided to increase its oil production by 36,000 barrels per day from Monday, Energy and Mines Minister Chakib Khellil announced.
Algeria had decided to increase its production in respect of a supply mechanism agreed by the Organisation of Petroleum Exporting Countries (OPEC), to which Algeria belongs.
Under the arrangement, OPEC is to increase its overall output of oil by 500,000 barrels per day if the reference price of a so-called basket of oils used as a benchmark by OPEC exceeds $28 per barrel for 20 working days in a row.
Under the mechanism, production would be reduced by the same amount if the price of oil fell to less than $22 during 20 trading days.
The increase by Algeria takes total Algerian production to 872,000 barrels per day.
Last week the Algerian minister said that he was concerned that the price of oil might fall at the beginning of next year owing to an imbalance of supply and demand.The members of OPEC are to meet on November 12 to study the state of the oil market.—AFP.
©--Agenece France Presse.