Baku, Azerbaijan, Nov. 24
By Maksim Tsurkov – Trend:
Regardless of the decision of freezing or reducing oil production, which is planned to be made at the OPEC summit in Vienna on November 30, freezing or reducing oil production will promote an increase in oil prices, said Natig Aliyev, Azerbaijani energy minister, in his article, published by the country’s Respublika newspaper Nov. 24.
In the article, the minister expressed hope that the establishment of close ties between OPEC and Azerbaijan through a dialogue and consultations will create opportunities for regular exchange of experience on monitoring the changes on the global energy market and rapid response to those changes.
"At the same time, such cooperation will create conditions for achieving a beneficial agreement on possible decrease in oil production volumes, for which OPEC members will call Azerbaijan at the next meeting,” the article said.
Aliyev added that the OPEC’s assuming commitments on the oil market regulation and their division among the oil producing countries will become a message about a possibility of taking more stringent measures against those interested in speculation.
"In our opinion, in the current situation when the natural economic factors ensuring the high cost of oil, are weak, the rapid market expansion is required,” the article said. “If we take into account the countries’ GDP rates in 2016 and 2017, the decline in the pace of economic development in China, India and the Eurozone can be seen.”
“China's GDP rate will fall from 6.5 percent in 2016 to 6.1 percent in 2017, India’s GDP rate from 7.5 percent to 7.2 percent, the Eurozone countries’ GDP rate from 1.5 percent to 1.2 percent," the article said.
OPEC members reached a preliminary deal in Algeria in September to cap oil production at 32.5-33 million barrels per day. The deal is expected to be finalized in Vienna on November 30.