Baku, Azerbaijan, April 9
By Leman Zeynalova – Trend:
Recently, oil prices have returned to the $70 per barrel level not seen since last November, which is due to four reasons, Neil Atkinson, head of oil Division at the International Energy Agency (IEA), told Trend.
“This is due to the overall success of the OPEC/non-OPEC agreement in cutting production and to the tightening of sanctions against Iran and Venezuela. There is also renewed uncertainty about oil production in Libya. Higher oil prices are also supported by robust demand growth which we think will be 1.4 million barrels per day in 2019,” he said.
“As we move into the second quarter of 2019 our data suggest that the oil market is rebalancing with demand exceeding supply. Beyond then, we cannot be sure, as it depends on many factors including whether or not the current OPEC/non-OPEC agreement is extended, the pace of growth of US oil supply, and the health of the global economy.”
He went on to add that in terms of overall compliance the OPEC+ agreement has been a success with OPEC countries cutting by more than their commitment, led by Saudi Arabia.
“The non-OPEC countries, led by Russia, have recently improved their compliance rate. It is a matter for other countries to adjust their production as they see fit and we will monitor these developments closely,” Atkinson said.
On December 7, 2018, an agreement was reached at the fifth ministerial meeting of the non-OPEC member and non-OPEC countries in Vienna to cut daily oil production by 1.2 million barrels. As part of the agreement, Azerbaijan has reduced daily production by 20,000 barrels since January 1, 2019.
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