Algeria has implemented the oil production cuts agreed to by the Organization of Petroleum Exporting Countries in October, Energy Minister Chakib Khelil said Saturday. But further cuts are needed to stabilize oil prices, he added.
Algeria, a member of OPEC, has reduced its production by about 59,000 barrels a day, as had been decided by OPEC when it last met in October, Khelil said. "Normally, we should begin to see the effects (of the cuts) in December," he said.
OPEC members are meeting Dec. 14 in Nigeria amid word there might be further output cuts. "We'll see then what the situation of the market is and we'll make a decision, in order to ensure stable (oil) prices," Khelil said. "But I believe that in order to ensure market stability, it would be good to further reduce production," he said.
In October, OPEC agreed to cut more than 4% of its oil output, or 1.2 million barrels a day. The move to shore up oil prices at a time of swelling crude stockpiles across the world was intended to cut output from the 10 OPEC members with production quotas to some 26.3 million barrels a day, from 27.5 million barrels a day.
Evidence that the group has come close to delivering such cuts remains sparse and market participants are waiting for data from energy institutions in early December to evaluate the actual extent of the cuts.
Benchmark U.S. light, sweet crude futures have plummeted by about 25% since mid-July to around $59 a barrel.