BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
COOKIE NOTICE

Register with us today

and in less than 60 seconds continue your access to: Latest news headlines Analytical topics and features Commodities videos, podcast & blogs Sample market prices & data Special reports Subscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber (https://pmc.platts.com), Please navigate to Platts Market Center to reset your password.

In this list
Oil

Algeria expects oil price to fall further, delays spending: PM Sellal

Energy | Natural Gas | LNG | Oil | Refined Products

Interview: Satvinder Singh, Enterprise Singapore

Oil

Platts Rigs and Drilling Analytical Report (RADAR)

Commodities | Energy | Oil | Crude Oil

North American Crude Oil Exports Summit

Oil

North Sea oil workers' union to press on with strike after latest talks with Total

Algeria expects oil price to fall further, delays spending: PM Sellal

Algiers — Algerian Prime Minister Abdelmalek Sellal said late Wednesday he expects the oil price to fall further, adding that Algeria is now in a state of economic "crisis."

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

Speaking on state television, Sellal said Algeria is to defer a number of key infrastructure projects due to the falling oil price as the slump begins to hit the North African country's economy.

"The decline in the oil price will continue and it will not go back to $120/b," he said.

"We are in a state of crisis," Sellal said. "Oil is below $50/b, and no one anticipated such a fall."


Algeria's 2015 budget is based on a price of $60/b.

"We will continue to invest in social projects, but we will have to cut certain non-essential spending such as trams and railways. These will be postponed," Sellal said.

Despite the economic crisis, Sellal said Algeria had sufficient cash reserves to meet its development budgets for the "next three or four years" without any issues.

He added that the current crisis would prompt Algeria to seek to lessen its dependence on oil and gas.

"We will help companies -- private and public," he said.

Algeria earned $60.15 billion from its oil and gas exports last year, a fall of $2.85 billion, or 4.5%, compared with the previous year, the country's national statistics agency, CNIS, said Wednesday.

The revenues represented 95.5% of Algeria's foreign earnings, highlighting the country's dependence on its oil and gas exports.

Algerian Oil Minister Youcef Yousfi has been one of the most vocal among OPEC ministers calling for the group to reduce its production to shore up falling oil prices.

With global oil prices now languishing below $50/b, the impact on Algeria's economy this year will likely be more severe than in 2014.

--Lies Sahar, newsdesk@platts.com
--Edited by Maurice Geller, maurice.geller@platts.com