Algeria says OPEC to seek 'consensual step' to halt oil price drop

By Hamid Ould Ahmed ALGIERS (Reuters) - OPEC will seek a "consensual step" at its Thursday meeting as the group discusses a sharp drop in crude oil prices, Algerian Energy Minister Youcef Yousfi said on Tuesday. "This step is necessary to bring stability," he told the official APS news agency, without giving details on what exact measures the group would take. Brent crude oil prices steadied around $80 a barrel on Tuesday ahead of a meeting of the meeting of the Organization of the Petroleum Exporting Countries to decide on production levels for next year. Oil market watchers are split on what actions OPEC will take at its meeting in Vienna. Predictions range from a large production cut to revive prices, to a small reduction, or none at all. OPEC "will study the market evolutions, imbalances that caused this decline in oil prices and consult on the way to restore market balance," the Algerian minister said. Crude prices are down by about a third since June and the price drop has negatively affected investments in the oil industry, Yousfi said. "We already notice, in some regions in the world, a slowdown, otherwise a reduction in investments in exploration and development of new fields, which could have consequences in the future," he said. Algeria relies heavily on energy exports to pay for social programmes and fund economic development projects. It expects oil and gas earnings of $60 billion this year, down 5.2 percent from 2013, due to the oil price drop. It produced 1.2 million barrels per day of oil in 2013, and experts say output has been declining due to a lack of foreign investment in the North African state. (Reporting by Hamid Ould Ahmed; editing by Patrick Markey and Jason Neely)