The price of oil fell yesterday after Algeria became the latest member of the Organisation of Petroleum Exporting Countries (OPEC) to push for an increase in its output quota. Brent North Sea crude for September delivery fell 55 cents to $24.76 (€25.14) a barrel. In New York, light sweet crude September-dated futures fell 41 cents to $26.43.
The Algerian Energy Minister, Mr Chakib Khelil, said on Saturday that Algeria had asked OPEC to increase its oil production quota from the current ceiling of 693,000 barrels per day.
He said the request would be examined by the cartel at a meeting in Geneva at the end of August. "We have asked our representative to negotiate a higher quota," Mr Khelil said. Algeria's move comes less than a week after Nigeria said it would also push for a higher output quota.
"The market was hit by the news from Algeria," said Prudential Bache oil broker Mr Christopher Bellew. "Whether they get the higher quotas or not it continues to sow seeds in people's minds about non-compliance," he added.
With other cash-strapped OPEC members such as Venezuela keen to lift output analysts said it was looking increasingly likely the cartel would be forced to sanction an increase in output when it next meets to discuss the issue of quotas in September.
