Oil prices won't fall to lower level: expert

December 8, 2014 5:58 am 

ALGIERS, Dec. 8 — Oil prices which hit the lowest level for four years at global market will not fall downer, an Algerian energy expert said Sunday in Algiers.

"According to previous experiences, I could say that the current oil prices level which stands around 70 dollars a barrel, would not go downer," Chergui Dgemoi told reporters on the sidelines of the North Africa Oil and Gas Summit being held in Algiers.

Djemoi predicted that oil prices "would be maintained at the current level for the forthcoming six or eight months."

He listed a couple of reasons that would oil prices to raise, including a drop in global demand which is to be seen after six or eight months, simultaneously with the recession of the global economy. He also predicted that oil prices would once again raise to hit between 100 and 110 dollars a barrel.

According to official figures, oil and gas exports represent 97 percent of the North African nation's export revenues, and 40 percent of its GDP.

Oil revenues are the main drive of Algeria's economy and social development projects, including housing programs and infrastructures, in addition to the subsidizing of staple food stuffs to maintain their prices within the reach of average people.

Experts say that Algeria's economy is balanced at an oil barrel upper than 100 dollars in order to swiftly support the 2015-2019 development program of the government.

During its last month's meeting, OPEC agreed to roll over the ceiling of 30 million barrels per day, which has maintained oil prices at their lowest level for four years. (PNA/Xinhua)

FPV/JSD

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