(Ecofin Agency) - Algeria has recorded a drop in its oil revenue by 32.09% during the first seven months of this year as a result of the decline in oil prices in the global market.

Oil is the country’s main source of generating income. For the first seven months, the value of crude oil and petroleum exports dropped by $6.27 billion to reach $14.9 billion compared to the $20.9 billion recorded during the same period last year.

The OPEC member currently produces 1.2 million barrels of oil per day as fuel accounts for 93.73% of Algeria’s exports, Middle East Monitor reports.

Talks of an output freeze between members of the Organization of Petroleum Exporting Countries (OPEC) and non-members have caused a jump in crude prices, as the move raises hope for an agreement between member countries to reduce oil output and bolster prices.

Members of the oil cartel are not expected to meet until November in Vienna, Austria, but informal talks will be held at Algiers’ International Energy Forum on September 26-28.

Analysts at US JP Morgan bank have said that many of the requirements for a production deal seem to be in place than at the start of the year but for any agreement to be reached, more evidence will be required from major OPEC and non-OPEC members.

“However, a deal remains a risk scenario, rather than our base case scenario, that at best we would ascribe a 35 percent chance to becoming a reality. The risks to the current rally will increase as we approach the actual meeting, if the necessary hurdles to reaching an agreement are not cleared, e.g. refusal of a key participant to attend the informal talks, etc.,” they said.

Anita Fatunji