The Strategist

Bloomberg: Algeria ceases to be an oil power

02/09/2021 - 08:47

According to Bloomberg calculations, Algeria's oil and gas exports fell by 30% in 2020.

The negative trend has continued this year - in January, crude oil sales fell to 290 thousand barrels per day, down 36% from December and the lowest since 2017. 

The agency cites mismanagement of the country's oil and gas industry and insufficient investment in the sector as the reasons for this situation.

According to Economic Planning Minister, such a sharp decline in oil and gas exports could lead Algeria to stop selling these raw materials abroad within the next ten years. 

"Algeria is no longer an oil power," the official said on local radio.

According to IMF calculations, Algeria needs an oil price of about $135 a barrel, higher than any other Arab exporter, which is more than half its current price of around $60 a barrel, to keep its budget stable.