Natig Aliyev: Current oil prices acceptable for Azerbaijan

Natig Aliyev: Current oil prices acceptable for Azerbaijan

Baku, Azerbaijan, May 24

By Maksim Tsurkov – Trend:

Azerbaijan will support the proposal to prolong the agreement on reducing oil output between OPEC and non-OPEC countries, said Azerbaijan’s Energy Minister Natig Aliyev in his interview with the Caspian Energy magazine.

According to him, the Vienna agreement, signed in November 2016, was the first important joint agreement reached throughout the whole history of OPEC and non-OPEC states.

“The second significant advantage of this meeting was the determination of the method and mechanism of influencing the market by means of consecutive and agreed reduction of oil production. Monitoring and technical committees were established to study and control the market situation. They have already held two sessions this year. They gave positive conclusions about the fulfillment of these agreements and about the influence of undertaken obligations on the market. Thanks to it, the oil price remained practically stable within $50-55 per barrel starting from January,” noted the minister.

He said also that the current oil prices are acceptable for Azerbaijan.

“It is rather acceptable for Azerbaijan. Price stability and predictability is of great importance to us. We are the country which is certainly dependent on oil price at the world oil market as it is included into the calculation when setting the budget revenues. As you know, this year we have taken $40 as the basis. If the price stays at $50, it means that we are going to have a budget surplus during five months. It is rather a positive factor for our economy and is certainly of great importance,” he noted.

Aliyev also spoke about his expectations from the probable prolongation of the agreement.

“Minister of Energy, Industry, and Mineral Resources of Saudi Arabia Khalid Al-Falih has recently paid a two-day visit to Baku on my invitation. I should say that besides him I talked to ministers of Kuwait, Egypt and they are all quite optimistic. On the other hand, they highly appreciate the results of the reached agreements. I have not had relevant consultations with Iran, but I think that Iran will not also oppose the agreement in this case either,” said the minister.

“The way the OPEC members were going to settle this issue among themselves was their internal business. During my meeting with Saudi Arabian Minister Khalid Al-Falih we exchanged opinions, held consultations and agreed that at the next Vienna meeting we would speak for extension of the agreement as it gave such a positive effect – the producers are satisfied and the most important thing is that the global economy managed to absorb this prices. Then the minister left for Russia and Kazakhstan in order to reach agreement with these countries. I think his trip was successful. We also agreed that Azerbaijan would support the proposal to prolong the agreement until the end of the year.”

“It is a little bit harder with Kazakhstan’s position as it launched a new field Kashagan. And it is quite natural that the new field has to reach a certain rate of commercial production. But I think that Kazakhstan will find a solution for this problem. Russian Federation’s Energy Minister Alexander Novak has recently met with Khalid Al-Falih. In the course of the meeting it was offered to prolong the Vienna agreement for the following 9 months, namely till the end of the first quarter of 2018,” he said.

“I think that the results of the monitoring held by the technical committee will be announced at the next meeting fixed for May 25. Besides, there will be made certain conclusions regarding the trends and tendencies we are to face till the end of the year. I mean trends and tendencies on economic growth rates of continents and countries, the rate of current oil demand and supply, and whether there is a too high difference between supply and demand. I think each of us will make a suggestion how to make sure that oil supply does not exceed demand too much. After discussing these issues we will probably decide to prolong the agreement and in case of the necessity maybe we even will increase the production cut. The appeal to other countries to take adequate measures on oil production cut is also rather important,” said the Azerbaijani minister.

One thing is clear that everybody will gain if the price is preserved at $50-60 rate till the end of the year, according to Aliyev.

“The higher rate will involve other factors, which will level the production cut. Nevertheless, today I give quite an upbeat assessment of the market condition. Therefore, I do not expect any tricks and surprises from the results of the Vienna agreement. We will manage to reach consensus on the matter that makes the world uneasy,” noted the minister.

On May 23-25, Vienna will host a meeting of ministerial council of OPEC and non-OPEC states, during which it is expected that a decision will be made on prolongation of the agreement on oil production cut.


Follow the author on Twitter: @MaksimTsurkov

Australian PM extends lead as country's most preferred leader, poll shows
Australian PM extends lead as country's most preferred leader, poll shows
Brazil reports 572 more deaths from COVID-19
Brazil reports 572 more deaths from COVID-19
Lebanese environment minister submits resignation following Beirut's blasts
Lebanese environment minister submits resignation following Beirut's blasts
Loading Bars
Australian PM extends lead as country's most preferred leader, poll shows
Brazil reports 572 more deaths from COVID-19
Lebanese environment minister submits resignation following Beirut's blasts
Israel's COVID-19 death toll rises to 600
Int'l community pledges aid to blasts-stricken Lebanon
UK COVID-19 daily death count could be scrapped
China targeting U.S. election infrastructure with cyberattacks, says O'Brien
Number of COVID-2019 cases across globe up by over 273,000 in past day - WHO
COVID-19 infection rate in Turkey increased since May, Koca warns
Iran's NirouChlor Company continues to export to European countries
Kazakhstan, Vietnam trade turnover down twofold
China to implement new construction project in Georgia
Russia's import of Turkish defense products grows despite pandemic
Africa's COVID-19 cases surpass 1.03 mln as death toll rises to 22,966
Erdogan says Turkey becomes 3rd to develop COVID-19 vaccines
Iranian Energy Exchange announces products for sale on August 10
Exit poll: Lukashenko winning 79.7% of votes at Belarus’ presidential election
All polling stations close in Belarus, vote count in progress
Azerbaijan plans to amend legislation to support local production
Greece registers highest daily tally of COVID 19 cases
Larsi border checkpoint employee tests positive for COVID-19 in Kakheti
Another 8 coronavirus-related fatalities registered in Kyrgyzstan
Bahar Azadi gold coin price falls in Iran
Turkey's domestic car project attracting global players' interest
2 civilians killed, 5 troopers injured as blast rocks western edge of Kabul city
Weekly review of key developments in financing, agricultural sector of Azerbaijan
Gov't allows 101 Georgian citizens to enter Turkey
Pandemic fuels e-commerce boom in Turkey
Kazakhstan's export to Poland slightly down amid COVID-19
Iran's South Pars Gas Company begin repairs
1 dead, at least 20 injured in Washington D.C. shooting
Weekly review of events in financial market of Azerbaijan
Presidential election in Belarus declared valid
Production of major Iranian steel companies up
Volume of wheat purchased in Iran's Markazi Province increases
Prime Minister of India to inaugurate submarine cable connectivity to Andaman & Nicobar Islands 10th August
India begins examination of plane's black box after deadly crash
Doctor infected with COVID-19 working in several clinics in Gori and Tbilisi
5 killed, dozens injured in Istanbul bus crash
Kyrgyzstan's total number of recoveries from COVID-19 surpasses 31,820
"TurAz Qartalı - 2020" exercises continue with participation of helicopters (PHOTO/VIDEO)
5.1-magnitude quake shakes west of Iran
Azerbaijan launches tobacco drying enterprise in Tovuz district (FOTO)
Iran declares amount of investment in Bushehr port
Iran reveals its COVID-19 data for August 9
Azerbaijan reports 308 new COVID-19 recoveries
Samsung remains most-used mobile device in Azerbaijan
Iran's Shahid Salimi TPP boosts its production
US expert: Development of Amulsar mine causes tremendous pollution of fresh-water resources in Caucasus
Turkey reports 1,172 new COVID-19 cases
Georgia reports 9 new cases of COVID-19, 4 recoveries
COVID-19-like pneumonia affected over 1,000 more Kazakhstanis, killing 15
Turnout at Belarus presidential election reaches 45.33%
Iran discloses volume of wheat purchased in Ardabil Province
Azerbaijani government to support entrepreneurs in digital infrastructure dev't
Iran reveals value of exports via Kermanshah Province to Iraq
Special Forces Units also involved in first stage of Azerbaijani-Turkish tactical exercises (PHOTO/VIDEO)
Saffron to be auctioned in Iran
Azerbaijan reveals daily crude oil production for July 2020
Early voting turnout at 41.7% in Belarus
Iranian currency rates for August 9
Polling stations at Belarus presidential election open at 8:00
Armenia violates ceasefire with Azerbaijan 28 times
Export of steel from Turkey abroad in 1H2020 shrinks
Geostat reveals inflation rates in Georgia in June 2020
South Africa's COVID-19 death toll exceeds 10,000
EU Ambassador: Uzbekistan is one of key countries in Europe-Asia Connectivity Strategy
New COVID-19 cases detected in Kazakhstan in past day
Esper: U.S. will cut troop levels in Afghanistan to 'less than 5,000'
Law enforcers regain control of Beirut’s center, ministries captured by protesters
Chinese mainland reports 23 new confirmed COVID-19 cases
Ukraine president says Kyiv staying out of U.S. internal politics, elections
U.S. sets record as coronavirus cases top 5 million
Twitter, TikTok held preliminary talks about potential combination: WSJ
Brazil surpasses 100,000 deaths, 3 mln cases of COVID-19
Trump signs orders to extend certain COVID-19 relief after Congress fails to reach deal
Turkey reports 1,172 new COVID-19 cases, 239,622 in total
Czech apartment fire kills 11, including three children
Moscow's death toll from confirmed coronavirus cases rises by 12 to 4,572 - crisis center
WHO reports one-day surge in coronavirus cases by over 284,000
Plane crashes in Portuguese-Spanish joint fire operation, one killed
Lebanese PM says only way out of crisis is holding early elections: statement
Over 230 injured in Beirut protests - Lebanese Red Cross Society
Ireland reports highest number of new COVID-19 cases since early May
Beirut explosion death toll rises to 158, over 6,000 injured: Health ministry
Android goes on being most popular operation system in Azerbaijan
Turkey records decline in carpet export in 1H2020
Official: Epidemiological situation in Georgia is manageable and under control
Iranian mayors express readiness to help Beirut after blast
Kazakhstan sends military medical team to Lebanon after Beirut blast
Protesters storm Lebanon's Foreign Ministry
Oil spill threatens ecological disaster as Mauritius declares emergency
Belarus reports 124 new COVID-19 cases, total reaches 68,738
Azerbaijani president congratulates president of Singapore
Azerbaijani MFA: Armenia is making attempts to illegally resettle Armenians from Middle East to Azerbaijan's Nagorno-Karabakh and adjacent regions
Iran declares amount of funds to be paid for construction of Ardabil-Mianeh railway
Iran Red Crescent delivers 15 tons of food to Lebanon Red Cross
Turkey to allocate Port of Mersin for Beirut's use, top Turkish official says
PM Gakharia: Georgia ready for NATO membership
Libya reports 200 new COVID-19 cases
All news