Azerbaijan fulfilling commitments under OPEC+ deal (UPDATE)

Oil&Gas Materials 20 May 2019 12:22 (UTC +04:00)

Details added (first version posted on 11:55)

Baku, Azerbaijan, May 20

By Sara Israfilbayova - Trend:

The level of fulfillment of Azerbaijan’s commitments to reduce oil production under the OPEC+ agreement in January-April 2019 was 130 percent, Azerbaijani Energy Minister Parviz Shahbazov said.

He was speaking at OPEC 14th Meeting of the Joint Ministerial Monitoring Committee in Jeddah, Saudi Arabia,Trend reports with reference to Azerbaijan’s Energy Ministry.

Global oil prices showed growth on May 20, the main impetus for which were signals from the cartel about possible continuation of the oil production cut until the end of the year and the situation around Iran.

As part of the meeting, a report on oil production in April was presented by the joint technical commission of the OPEC Monitoring Committee. The participants discussed development trends of the global economy and the oil market and analyzed the level of fulfillment of commitments in the format of the OPEC+ agreement.

It was noted that the high level of fulfillment of commitments under the agreement had a positive effect on the oil market, especially on oil prices.

The report reads that the commitments of OPEC+ countries in April were fulfilled by 168 percent, and the average level of commitments from January to May was 120 percent.

“These indicators are considered as factors that have a positive impact on global economic development compared to the fourth quarter of 2018,” the report said.

OPEC+ is going to consider further steps on balancing the oil market at a meeting in Vienna scheduled for June 25-26.

So far, the positions of the two leading “players” in the OPEC+ agreement, Saudi Arabia and Russia, do not coincide. Russia believes that it is possible to weaken the requirements for reducing oil production, while the Saudis still see threats to the balance of the “fragile” energy market.

As part of the visit, Shahbazov held a number of meetings with colleagues from other countries.

During the meeting with Minister of Energy, Industry and Mineral Resources of Saudi Arabia Khalid Abdulaziz al-Falih, the current situation in the global oil market, the level of fulfillment of oil production reduction commitments, short-term and long-term expectations, as well as bilateral energy cooperation were discussed.

Minister Shahbazov also held meetings with UAE Energy Minister Suhail Mohammed Faraj Al Mazroui, Venezuelan Oil Minister Manuel Quevedo and others.

He also held a meeting with OPEC Secretary General Mohammed Barkindo. As the OPEC Secretary General noted, it is important to continue implementing measures within the OPEC+ format to maintain market stability. In his turn, Shahbazov said that the overall level of fulfillment of commitments on OPEC+ countries is the result of successful cooperation.