l’Algérie et sept autres pays annoncent une nouvelle augmentation de leur production pétrolière à partir de juin
Algeria and Other OPEC+ Countries Agree to Increase Oil Production
Overview of the Decision
The Algerian government, alongside seven other member nations of the OPEC+ alliance, has announced plans to increase oil production starting June 2025. This decision was confirmed in an official statement from the Ministry of Energy, Mines, and Renewable Energies, marking a new phase in the gradual lifting of previously agreed production cuts.
Meeting Details
The agreement followed a ministerial meeting conducted via videoconference, which included representatives from Algeria, Saudi Arabia, the United Arab Emirates, Iraq, Kazakhstan, Kuwait, Oman, and Russia. Algeria’s Minister of Energy, Mines, and Renewable Energies, Mohamed Arkab, participated in the discussions which focused on analyzing the current international oil market and its foreseeable future, examining compliance with reduction commitments, and managing excess volume compensations.
Production Increase Insights
The participating countries have collectively agreed to raise their production levels by approximately 411,000 barrels per day by June 2025, which is in anticipation of a stronger oil demand projected for the third quarter of 2025. This decision aligns with earlier agreements made on December 5, 2024, and reiterated on March 3, 2025. The ministry’s statement emphasizes that this increase is designed to be "gradual and adaptable," allowing for potential reevaluation or suspension based on market dynamics to ensure stability.
Impact on Algeria’s Oil Production
As part of the new production strategy, Algeria’s crude oil output is set to rise by 9,000 barrels per day, which will bring the total production to 928,000 barrels per day in June. This increment is part of a broader progressive return plan initiated on April 1, where member states aim to systematically increase their production following a previous reduction of 2.2 million barrels per day.
Rationale behind the Increase
The 411,000 barrel increase corresponds to what OPEC+ describes as three consecutive monthly hikes. The rationale for this decision is grounded in the current healthy fundamentals of the oil market, highlighted by notably low oil stock levels. The emerging trend of rising demand provides a further impetus for these countries to increase their output while maintaining a balance in the market.
Future Collaborative Efforts
At the conclusion of the meeting, the ministers decided to maintain monthly meetings aimed at monitoring market conditions, adherence to commitments, and the evolution of compensatory measures among member countries. The next such meeting is scheduled for June 1, 2025, reinforcing the OPEC+ group’s commitment to proactive management of both production levels and market stability.
Summary
The announcement marks a significant shift for Algeria and its OPEC+ partners as they respond to potential changes in global oil demand. By gradually increasing production, they aim to align with market dynamics while preserving overall market stability. The monthly consultations scheduled will ensure ongoing communication and collective action among the member states, adapting their strategies as market conditions evolve.
