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Algeria has suggested the creation of a joint committee comprising OPEC members and non-OPEC oil producers for energy market assessment to boost co-ordination among oil producing countries. Minister of Energy Noureddine Boutarfa told the media Wednesday in Vienna.
The mission of this committee. if it were established. would be broader than the one of the ministerial committee for monitoring the OPEC-non-OPEC agreement. explained Boutarfa. who is in the Austrian capital to take part in the meeting of the joint OPEC and non-OPEC joint monitoring committee. as well as the 172nd Ministerial Conference of the Organization of Petroleum Exporting Countries (OPEC) and the OPEC and non-OPEC Ministerial Conference.
We need to evaluate the market in a more global way and look at the impact of all energy offerings. notably renewables. shale gas and oil. so that we can discuss with producers and see what measures can be reasonably taken in charge. Boutarfa said.
In this regard. he stressed that several countries. notably Russia and Saudi Arabia. saw the Algerian proposal as a good suggestion and found it interesting.
Regarding the production reduction agreement inked last December in Vienna. by both OPEC and non-OPEC countries. the minister noted that it had begun influencing the physical market. but should continue beyond December 2017 in order to achieve its goals.
The results of the agreement have been slow. The increase in prices in the first three months of 2017 is explained more by the psychological effect of the agreement than by a real market effect. he explained.
The fundamentals of the market have not really changed during these months. but now yes. the physical market is starting to respond.
According to the minister. the impact of the agreement would be felt more. given the weekly indices of oil stocks which have dropped sharply as well as the expected increase in demand in the coming months.
