ALGIERS, Jan 6: Algeria will reduce oil output by 25,000 barrels per day (bpd) from Feb 1 in compliance with Opec's latest production cut, Energy and Mines Minister Chakib Khelil said on Saturday.

“For Algeria we have given instructions to cut production by 25,000 bpd from Feb 1,” he said. “We cannot speak about a further cut because Opec members have yet to start implementing the last decision to reduce half a million barrels.”

“After the latest decision by Opec to cut output is fully implemented, prices will go up or stay at their current level,” he added.

Oil prices have fallen by close to 10 per cent since the start of the year, pushed lower by unseasonably warm weather in the US Northeast that has cut demand for heating fuels.

The prospect of new non-Opec oil supplies and a slowing economy in the United States, the world’s biggest energy consumer, have also weighed on sentiment.

Analysts have said price weakness could strengthen the group's resolve to enforce supply discipline.—Reuters