Algeria says sharp oil price fall would mean budget cuts

 With social spending on the rise, oil output in decline and the price of its main earner natural gas weaker, Algeria has joined Iran and Venezuela as a price hawk in the Organisation of the Petroleum Exporting Countries.

"We have the ability to reduce a number of expenditure or delay certain projects if the situation is very serious, and then it is up to the government to decide on priority projects," Djoudi told reporters in response to a question on the effect of a lower oil price.

But, speaking in parliament, he reiterated Algeria was for now shielded from any financial turmoil.

Oil and gas sales abroad account for about 97 percent of total exports.

Algeria's central bank had said overall energy exports declined 3.3 percent in 2012, pushing earnings down to $70.59 billion from $71.66 billion in the previous year.

Official figures also showed crude oil and natural gas output dropped by 6 percent in 2012.

Djoudi said crude prices decline, to around $104 a barrel on Thursday from around $115 early this year, was due to high stocks in the United States as well as the use of other energy resources such as shale gas.

Algeria started in 2010 implementing a $286 billion five-year economic plan to modernise basic infrastructure and cope with social problems including unemployement and a housing shortage.

Algeria's economy grew 2.5 percent in 2012, according to the International Monetary Fund (IMF)which forecast a 3.3 percent growth for this year.