Analyst: OPEC can soften terms of deal on cutting oil production

Oil&Gas Materials 8 May 2019 20:38 (UTC +04:00)

Baku, Azerbaijan, May 8

By Sara Israfilbayova – Trend:

Solidarity of Azerbaijan with other participants of the OPEC+ deal contributes to its sustainability and opens up prospects for attracting new participants, Vasily Tanurkov, director of the Corporate Ratings Group at Russia’s Analytical Credit Rating Agency (ACRA), told Trend.

“It is not only Azerbaijan’s contribution to the overall production cuts that is important, but also the country's solidarity with other OPEC+ members, which contributes to the sustainability of the deal and opens up prospects for attracting new participants,” Tanurkov said.

As to the possibility of extending the deal for cutting oil production, the expert noted that currently the most probable and viable solution is to extend the deal while softening its terms by increasing production quotas, in order to compensate for the drop in exports from Iran and Venezuela.

An agreement was reached to reduce daily oil production by 1.2 million barrels at the 5th OPEC and non-OPEC Ministerial Meeting in Vienna, Austria, on December 7, 2018.

As part of the agreement, Azerbaijan has reduced daily production by 20,000 barrels since January 1, 2019.


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