Faced with the “yoyo” of oil prices, Algeria prepares its barrels

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Fear that the conflict in Russia could escalate and lead to new sanctions against Moscow has helped push up Brent crude oil prices. The possible extension of sectoral sanctions against Russia to energy exports continues to panic the market.

Oil prices yesterday Thursday recorded their first increase in three weeks during which the price of black gold experienced an unprecedented plunge. Brent crude rose 1.5% to $102.55 a barrel, while U.S. crude rose 1.3% to $97.49 a barrel.

The USA and its allies panic the market

Even if this increase is rather modest and probably temporary, it is nevertheless a positive indicator in view of the impact caused following the announcement by the main consuming countries of their intention to release 120 million barrels of oil, drawn from their strategic reserves. A decision taken as an emergency measure to counter supply shortages in the market, a direct cause of the war between Russia and Ukraine.

Thus, the United States has promised to put on the market at least 180 million barrels, while the other member countries of the IEA have committed themselves to 60 million, or 240 million barrels in total.

As a reminder, the two crudes recorded a record drop of more than 5% last March. In terms of the near-term outlook, the market remains fairly balanced, trending higher after the recent turn of events with bearish supply reports, geopolitical tensions and potential EU oil sanctions against the Russia.

Algeria goes into overdrive

Given this situation, Algeria will have to increase its crude oil production in May by 11,000 barrels per day to reach 1 million barrels per day, according to the Minister of Energy, Mohamed Arkab at the end of the 27th OPEC+ ministerial meeting”, and the 39th meeting of the Interministerial Monitoring Committee under this organization, which were held by videoconference. This, while waiting for its next meeting on May 5 to examine the evolution of the world oil market.

Sonatrach is thus working hard to achieve its objectives in terms of hydrocarbon production. A strategy that is largely based on a program of geographical diversification of exploration and exploitation sites, particularly in the Sahara basins, and on the development of new fields to be explored.

With this in mind, Sonatrach recently announced the discovery of a new major hydrocarbon deposit of one billion barrels on the Touggourt exploration well. This is the biggest discovery made in Algeria since 2003.

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