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Wednesday, November 22, 2017

Oil prices won’t recover immediately in case OPEC freeze outputs – expert

Updated

By Philippine News Agency

MB FILE - This August 21, 2013 file photo shows an oil well near Tioga, North Dakota. Crude oil prices fell August 17, 2015, deepening a long slide as traders expect US production will remain strong, adding to abundant global supplies. (AFP PHOTO / Karen BLEIER / FILES) / mb.com.ph

MB FILE – This August 21, 2013 file photo shows an oil well near Tioga, North Dakota. Crude oil prices fell August 17, 2015, deepening a long slide as traders expect US production will remain strong, adding to abundant global supplies. (AFP PHOTO / Karen BLEIER / FILES) / mb.com.ph

ALGIERS — Algeria and several OPEC members express hopes that an informal meeting of the cartel here could pave the way for OPEC and non-OPEC members to freeze oil outputs, but oil prices won’t recover immediately according to an expert.

The informal meeting of OPEC will be held on the sidelines of the International Energy Forum in Algiers from Sept. 26-28.

OPEC Secretary-General Mohammed Barkind said last week that the Algiers meeting will try to reach a consensus to freeze outputs for at least one year.

Algerian Energy Minister Noureddine Bouterfa told reporters on Sunday that he is “very optimistic that OPEC members would reach a consensual agreement to restore stability to the up-and-down oil market.”

The OPEC members pump up 33.4 million barrels per day, which is a very high level that could never help pushing prices to hike, according to the Algerian official.

However, economic expert Abderrahmane Mebtoul said the prices would not rise immediately even though OPEC members agree to freeze or reduce outputs.

“The prices would not rise immediately at the international market, because they (oil prices) also depend on other factors, including the global growth rate as well as supply and demand,” Mebtoul told local Ennahar TV.

Moreover, energy expert Mustapha Mikedeche said OPEC members, including Algeria, have to look for other alternatives to rescue their economies because OPEC is unable to deal with the issue.

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