World oil demand/supply balanced

ALGIERS – World oil supply and demand are in balance and high prices are due to speculation, the weak dollar and geopolitics, the head of Algerian state energy conglomerate Sonatrach said yesterday.

“Demand and supply are practically balanced,” chief executive Mohamed Meziane said in an interview on Algerian state radio. “What is sure is that there’s been an increase in the price going on for two or three years now, due to several factors – the factors of speculation, the problem of the dollar, geopolitics, etc and the true price, it’s known, is perhaps a little less, less than what we have at the moment.”Asked what the high price meant for Sontrach, he said: “What is the reaction of our company? It is to produce according to its capacity, its objectives and the tasks it has been assigned by its owner,” he said, referring to the state.He put Sonatrach’s crude oil production capacity at 1,4 million to 1,45 million barrels per day.Nampa-Reuters”What is sure is that there’s been an increase in the price going on for two or three years now, due to several factors – the factors of speculation, the problem of the dollar, geopolitics, etc and the true price, it’s known, is perhaps a little less, less than what we have at the moment.”Asked what the high price meant for Sontrach, he said: “What is the reaction of our company? It is to produce according to its capacity, its objectives and the tasks it has been assigned by its owner,” he said, referring to the state.He put Sonatrach’s crude oil production capacity at 1,4 million to 1,45 million barrels per day.Nampa-Reuters