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According to figures from the Organization of Petroleum Exporting Countries, published in its monthly report on Thursday, "Algerian crude prices reached $ 62.38 per barrel in February 2021, against $ 55.08 last January."
This increase places Sahara Blend in 3rd position among the most expensive crudes in the OPEC basket in February, after Angolan Girassol (62.99 dollars / barrel) and Equatorial Guinean Zafiro (62.46 dollars / barrels).
The price of Algerian oil is established according to the price of Brent, a benchmark crude from the North Sea, listed on the London market with an additional premium for its physicochemical qualities appreciated by refiners.
This increase comes in a context of a general increase in crude prices, supported in particular by "optimistic assumptions on the tightening of the fundamentals of supply and demand, and reinforced by the energy crisis linked to weather conditions in the United States. United which caused a sharp drop in oil production, ”the report explains.
"The anticipation of a rapid return to pre-COVID-19 normality, the improvement in the COVID-19 situation in some countries as well as the decline in infection cases in major economies and encouraging signs of progress in the deployment of vaccination provided additional support, ”analyzes the report.
The organization further cites cold weather in the northern hemisphere which has raised the prospect of increased demand for fuel oil, while the price of electricity and gas has soared to extremely high levels in some regions of the United States.
The organization also asserts that "market players were also convinced of the strong commitment to production adjustments of OPEC member and non-OPEC member countries participating in the Declaration of Cooperation (Doc), and of the Saudi Arabia's unilateral decision to voluntarily adjust its production to a drop of 1 mb / d in February and March, "noting that the overall level of compliance of the countries concerned was 103% in January.
On the other hand, OPEC points out that the improvement in prices was supported by the sharp decline in crude oil inventories in the United States.
"All of these positive factors have offset a sluggish physical market since January and the cautious assessment of major oil demand forecasting agencies for this year due to recent renewed lockdowns and the spread of COVID-19 variants," notes the organization.
The report notes, in this context, that the OPEC basket in February reached its highest level since January 2020, up $ 6.67 (+ 12.3%) to an average of $ 61.05 per barrel.
Algeria produced 878,000 barrels in February
Regarding Algerian production, the OPEC report indicates that it reached 878,000 barrels in February 2021 against 874,000 barrels per day last January.
As for world oil demand, OPEC forecasts an increase this year, estimating that it "should recover in 2021,
increasing by 5.9 million barrels per day (mbd), to 96.3 mbd ".
However, "the growth in demand this year will not be able to compensate for the drop recorded in 2020, when mobility is expected to remain reduced throughout the current year," observes the organization.
It is in this context that OPEC underlines that in fact "the impacts of developments linked to COVID-19 remain uncertain, the pursuit of a responsible global policy is the business of all market players, including the efforts undertaken by OPEC and the non-member producers of the DoC participating Organization, will continue to be crucial in the coming months to bring markets back to more stable conditions. "