Algeria to cut oil output by 12,000 barrels daily under new OPEC deal

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A table with OPEC logo is seen during the presentation of OPEC's 2013 World Oil Outlook in Vienna , November 7, 2013. REUTERS/Leonhard Foeger
OPEC logo is pictured ahead of an informal meeting between members of the Organization of the Petroleum Exporting Countries (OPEC) in Algiers, Algeria September 28, 2016./REUTERS

Algerian Energy Minister Mohamed Arkab says his country will reduce its crude oil output by 12,000 barrels a day to comply with a deal agreed by other OPEC members aimed at  balancing the global oil market.

OPEC and non-OPEC producers led by Russia last week agreed a new deal to cut production that includes an extra 500,000 barrels a day.

“Algeria’s additional output cut is 12,000. I think it will not affect our contracts and exports,” Arkab told a state radio broadcast.

Algeria currently produces an estimated 1 million barrels per day but growth in domestic demand has hit overall energy earnings.

The North African country has approved a new energy law to make the sector more attractive to foreign oil investors.

“The law is aimed at finding profitable partnerships,” Arkab said.

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