Prices of Sahara Blend, the Algerian benchmark crude, jumped by 12.71 dollars in January, boosted by strong market demand and geopolitical tensions, the Organization of the Petroleum Exporting Countries (OPEC) said in its monthly report published Thursday.
The monthly average price of Algerian crude oil rose from $75.50/barrel in December 2021 to $88.21 in January 2022, an increase of 16.8%, according to the same source.
With this progression, Sahara Blend was the 2nd most expensive of the 13 Opec crudes in January, after Angolan Girassol.
The price of Algerian crude oil is based on the price of Brent, the benchmark North Sea crude oil traded on the London market, with an additional premium for its physical and chemical qualities, which are valued by refiners.
The increase comes in the aftermath of a surge in oil prices in January, due to strong demand amid easing fears about the impact of the Omicron variant and geopolitical concerns about short-term supply, the report says.
Overall, the average price of the Opec basket rose by USD 11.03 (+14.8%) compared to December 2021, to USD 85.41/barrel in January.
Algeria’s production reached 977,000 barrels per day in January, an increase of 11,000 barrels compared to the average production in December 2021 (966,000 barrels per day).
Opec countries produced a total of 27.981 million barrels per day (mb/d) in January 2022, up from 27.918 mb/d in December 2021, an increase of 64,000 bpd, according to secondary sources.
As for global oil demand, the organisation revised upwards its forecast for demand growth in 2022 by around 0.1 mb/d, compared to last month’s assessment, to stand at 28.9 mb/d.
APS 11/02/2022
