In addition, Algeria solidified its role as a main oil producer and exporter in the international landscape by joining the Organization of the Petroleum Exporting Countries (OPEC) in 1969. Hydrocarbons massively contribute to the Algerian foreign trade, as oil and mineral fuels account for around 95 percent of the total exports.
Why is Algeria a volatile oil market?
Algeria is essentially dependent on the hydrocarbon industry, and at the same time vulnerable to the volatile oil market. The first oil discoveries in Algeria date back to 1956. While French colonizers initially had control of local production, Algeria started to directly manage its oil resources after the 1962 War of Independence.
How did the decline in oil exports affect the Algerian economy?
That year, crude oil exports from Algeria fell by around 30 percent compared to 2019. The decline in petroleum exports substantially affected the Algerian economy. Since the discovery of oil, the country has been relying on hydrocarbons. The high oil rents resulted in generous government subsidies, especially within the energy sector.
Does Algeria export hydrocarbons?
Hydrocarbons massively contribute to the Algerian foreign trade, as oil and mineral fuels account for around 95 percent of the total exports. Nevertheless, after peaking in 2008, the value of petroleum products exported from Algeria has been declining in recent years.