Baku, Azerbaijan, May 13
By Sara Israfilbayova – Trend:
The participation of Azerbaijan in the OPEC+ deal is of great importance, Edward Moya, senior analyst at Oanda Corp., told Trend.
According to the analyst, Azerbaijan’s participation could prove to be key to make up for any increases that will be done to make up for the shortfall of Iranian crude.
The analyst noted that the latest efforts of members of the OPEC+ deal signatories have successfully delivered production cuts that have helped tighten the market and stabilize oil prices.
At the same time, the expert believes that it will be unrealistic for them to maintain cuts due to the multiple reasons, but mainly the impact of US sanctions on Iran and Venezuela.
Moya recalled that the OPEC initially had its extraordinary meeting scheduled on April 17-18th, but then moved it back to June 25-26th to see what action the US will take with the waivers of Iranian sanctions.
“President Trump’s decision to end sanction waivers means the Saudis and UAE will need to raise production to compensate for the loss of Iranian crude,” the expert noted.
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 on December 7, 2018.
As part of the agreement, Azerbaijan has reduced daily production by 20,000 barrels since January 1, 2019.
Azerbaijan agreed to reduce daily oil production to 776,000 barrels under the OPEC+ agreement.