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

FILE PHOTO: 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/Ramzi Boudina/File Photo

ALGIERS (Reuters) - OPEC member Algeria will reduce its crude oil output by 12,000 barrels a day to comply with a deal agreed by other producers with the aim of balancing the global oil market, Energy Minister Mohamed Arkab said on Monday.

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.

Reporting by Hamid Ould Ahmed. Editing by Jane Merriman

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