Russian Expert: New deal of OPEC+ to increase oil price, to be beneficial for Azerbaijan

Russian Expert: New deal of OPEC+ to increase oil price, to be beneficial for Azerbaijan

BAKU, Azerbaijan, April 5

By Huseyn Safarov – Trend:

The new deal of OPEC+ will increase oil prices, which, in particular, is important for the influx of new investments in energy projects of Azerbaijan, analyst at the Russian National Energy Security Fund, expert at the Financial University under the Government of the Russian Federation, Igor Yushkov told Trend, commenting on the upcoming meeting of OPEC+ countries.

The meeting will be held in the format of video conference on April 9.

“The new deal will increase the price of oil of the producing countries, including Azerbaijan, which is important for the influx of new investments in energy projects. In the current conditions of low prices, investors around the world have reduced investment in projects,” the analyst noted.

The expert believes that the return to negotiations is a positive fact, since this means freezing of plans on increasing production in the current absence of production quotas.

Indeed, earlier the plans of Saudi Arabia to increase production by 3 million barrels per day led to a collapse in prices, said the analyst.

“At the upcoming meeting, the parties should agree on quotas for the second quarter - 10 million barrels per day. It is a very large amount of reduction. The parties can agree on such a volume only if Saudi Arabia assumes more than half of it,” the expert stressed.

“It will be difficult for Russia to assume commitments on reducing production by more than 0.5 million barrels per day. At the same time, Russia is hinting that if low prices harm all producers, then everyone, including the US, should participate in the reduction,” the analyst emphasized.

“A positive scenario would be concluding an agreement on non-increasing oil production in the second quarter compared to the level of the first. And for the second quarter, it would be possible to really estimate the volume of reduction that needs to be done in order to balance the market, since by that time at least part of demand will recover. China is already reaching normal oil consumption, as it cancels quarantine measures,” Yushkov added.

Earlier, OPEC countries recommended an additional reduction in oil production by 1.5 million barrels per day until the end of 2020. However, at the March 6 meeting, the OPEC+ countries failed to agree on either an additional reduction or extension of the deal under current conditions.

Azerbaijan's E-PUL payment system grows user base, prepares new project
Azerbaijan's E-PUL payment system grows user base, prepares new project
Expert talks about ways to develop e-commerce in Azerbaijan
Expert talks about ways to develop e-commerce in Azerbaijan
China supplies innovative drip irrigation technology to Uzbekistan
China supplies innovative drip irrigation technology to Uzbekistan
Loading Bars
Latest
President Ilham Aliyev, First Lady Mehriban Aliyeva view restoration and conservation works at Pir Omar Sultan shrine in Shamakhi (PHOTO/VİDEO)
President Ilham Aliyev, First Lady Mehriban Aliyeva attend opening of orphanage-kindergarten No2 constructed on initiative of Heydar Aliyev Foundation in Shamakhi (PHOTO/VİDEO)
President Ilham Aliyev, First Lady Mehriban Aliyeva view conditions created at multi-apartment buildings constructed in Shamakhi (PHOTO/VİDEO)
President Ilham Aliyev, First Lady Mehriban Aliyeva view transport vehicles and special machinery allocated to Shamakhi district (PHOTO/VİDEO)
No alternative to renewable energy
Former UK PM Tony Blair questions Trump's leadership in coronavirus pandemic
Bosnian Premier League among worst in world for coach stability: survey
Philippines posts five new coronavirus deaths, 284 infections
Azerbaijan's E-PUL payment system grows user base, prepares new project
Azerbaijani Compulsory Insurance Bureau talks priorities in insurance market
Azerbaijani president, first lady view renovation work done on Pirsaat Baba shrine in Shamakhi (PHOTO)
Official talks latest status of Iran-India contract on Chabahar port
Iran expects domestic wheat production to reach 14 million tons
Iran to sell debt securities, to make up for budget deficit
Azerbaijan detects 149 new COVID-19 cases
Production of shoes surges in Azerbaijan
BSTDB, Development Bank of Austria to finance SMEs in Azerbaijan
Azerbaijani President Ilham Aliyev, First Lady Mehriban Aliyeva arrive in Shamakhi district (PHOTO)
TAP updates on compressor and metering stations
TAP: Offshore section not fully completed yet
Azerbaijan’s Finex Kredit talks about expansion of lending in agriculture
Kazakhstan cuts time on issuing certificates on import of perishable goods
Kazakhstan reveals state-backed funding measures for SMEs
Chairman of Kazakhstan’s Nuclear and Energy Supervision Committee appointed
Kazakhstan's Altynalmas starts commissioning its new gold recovery plant
National Iranian Oil Company reveals its debts to banks
Azerbaijani president congratulates Georgian president
Kazakh Tengizchevroil evacuates employees from field to prevent COVID-19 spread
Azerbaijani Agricultural Insurance Fund talks about shares of companies
Kazakhstan's Mangystaumunaigas oil&gas company reports net income decrease
Kazakhstan sets ceiling retail prices on commercial gas
Turkmenistan to establish Reserve Currency Fund
Geostat: Number of Georgian travelers taking trips abroad declines
Enhancing Ramsar Airport now allows Iran to receive bigger aircraft
Average monthly income up in Georgia
Iran to commission over 20 airport infrastructure facilities
Iran reveals its COVID-19 statistics for May 25
Indonesia reports 479 new coronavirus cases
Spain to welcome foreign tourists back from July
Malaysia reports 172 new coronavirus cases, most of them foreigners
Expert talks about ways to develop e-commerce in Azerbaijan
Iran sees 'no problem' with launching gas exports to Syria - minister
Georgia's COVID-19 cases climb to 731
Over 12K Georgian citizens brought home since COVID-19 outbreak
Iran hints at stopping export of gas condensate
Turkmenistan to receive loan from OPEC to support local businesses
Uzbekistan increases heat energy production
China supplies innovative drip irrigation technology to Uzbekistan
Uzbekistan increasing fuel production
Turkish president makes phone call to Azerbaijani president
TAV Airports look to turn Kazakhstan's Almaty into regional cargo hub
Turkmenistan, Turkey lay emphasis on co-op in trade, humanitarian sectors
Oil prices not to recover to pre-coronavirus levels as quickly as they fell
Kazakh national postal service operator to buy liquefied gas via tender
Uzbekistan lifts some restrictions to boost construction work countrywide
Azerbaijani oil prices for May 18-22
Iran's Khatunabad copper smelter’s production increases
Kazakhstan sees positive signs with its trade volume with Europe
Iran partially pays subsidies to construction company as part of Mehr Housing Project
Kazakhstan closes off Karachaganak field as COVID-19 cases reported
Iran- Iraq trade via Parviz Khan customs checkpoint resumes
MFA: Armenian PM’s congratulations on occasion of Ramadan - highest level of hypocrisy
COVID-19 cases in Uzbekistan increase to 3,180
FM: Azerbaijan, Turkey - together in joy and sorrow
Cement exports from Turkey to Kyrgyzstan fall sharply
Iran's watermelon exporters in Turkey face dilemma, as business suffers
Iran's foreign currency policy slows down exports
Kazakhstan’s oil producing company to buy pipes via tender
Armenia violates ceasefire with Azerbaijan 23 times
Iran Khodro breaks production record despite COVID-19 pandemic
Georgian banks' net profit up
Aston Martin chief to leave, Mercedes-AMG CEO to replace him
Iran allows high-risk businesses to re-open, with new health rules in place
Chamber of Commerce talks Iranian-Tajik trade amid COVID-19
Onshore oil, gas and condensate fields in Azerbaijan
Iran warns of health protocol as COVID-19 cases soar in some provinces
TANAP consortium talks on creation of operator company
Thailand reports 2 new coronavirus cases, 1 more death
Kyrgyzstan reports 30 new COVID - 19 cases, 1433 in total
Armenia ranks 6th with number of daily confirmed COVID-19 cases per million people
Number of COVID-19 cases surpasses 8,500 in Kazakhstan
BSTDB President: Azerbaijan has substantial buffers to mitigate COVID-19 impact on economy
Syrian troops destroy terrorist unit in southwest of Raqqa province
Chinese mainland reports no new domestically transmitted COVID-19 cases
S. Korea reports 16 more cases of new coronavirus, total at 11,206
U.S. COVID-19 death toll nears 100,000, New York Times calls it "incalculable loss"
White House limits travel to U.S. from Brazil due to coronavirus
Italy's COVID-19 death toll rises by 50 to 32,785
Coronavirus could cost Mexico a million jobs: president
UK COVID-19 deaths rise to 36,793 as another 118 patients die
Israel reports no COVID-19 death cases for 4 consecutive days
5.8-magnitude quake jolts Wellington, New Zealand
Spain's coronavirus death toll rises to 28,752
British PM Boris Johnson defends adviser over apparent breach of lockdown rules
India domestic flights to resume, but coronavirus cases rise
Singapore reports 548 COVID-19 cases
Oil demand projected to drop by more than 10% for 2020
Number of COVID-2019 cases across globe up by over 101,000 in past day - WHO
First Vice-President Mehriban Aliyeva extends Ramadan congratulations to the people of Azerbaijan (PHOTO)
Azerbaijani, Turkish FMs hold phone conversation
All news