The low oil price is negatively impacting another OPEC oil exporter as it continues to liquidate its foreign exchange reserves. Algeria, like Saudi Arabia, has seen its international reserves plummet by more than 40% as the oil price fell in half since 2014.
Algeria joined OPEC back in 1969 and is currently producing 1.1 million barrels of oil per day (mbd). While Algeria is not one of the larger OPEC members, it still exports roughly 670,000 barrels of oil per day. At $50 a barrel, the country receives $33.5 million a day in oil revenues. However, Algeria’s oil revenues have taken a nose-dive as the oil price declined from over $100 in 2014 to below $50 currently:
As we can see in the chart above, Algeria’s net oil export revenues fell from $61 billion in 2012 to $19 billion last year. Thus, Algeria’s net oil export revenues fell nearly 70% in the past four years. This has negatively impacted the country’s financial balance sheet. To make up for declining oil revenues, Algeria has liquidated $70 billion of its international reserves since the end of 2014: