Baku, Azerbaijan, July 8
By Sara Israfilbayova - Trend:
Over the months leading to the Vienna meetings, Azerbaijan has fully fulfilled its cut obligations as defined in the original OPEC+ deal, oil and gas analyst at market intelligence firm GlobalData Alessandro Bacci told Trend.
So, also in relation to the July 2019 extension, Azerbaijan is expected to continue to implement the cuts, he said.
“In the days before the meetings of July 1 and July 2, Azerbaijan said that it supported a rollover of the deal,” he noted. “This position was not new as Azerbaijan already some months ago had stated that it favored a deal extension if this was capable of stabilizing oil prices. In fact, for Azerbaijan, a country whose oil exports constitute in the first months of 2019 slightly more than 80 percent of the country’s overall exports, oil-price stability is necessary to avoid fluctuations in the government revenues and consequently for the budget.”
At the end of 2018, OPEC and a number of non-affiliated countries (OPEC+) decided to modernize the terms of the agreement on reducing oil production, which has been in force since the beginning of 2017. The countries agreed to reduce their production by a total of 1.2 million barrels per day from the level of October 2018.
Under the OPEC+ agreement, Azerbaijan, starting from 2019, should reduce oil production by 20,000 barrels per day compared to September 2018 - to 776,000 barrels.
The average daily volume of oil production in Azerbaijan in January-May 2019 amounted to 771,200 barrels.
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