Baku, Azerbaijan, July 8
By Sara Israfilbayova - Trend:
The goal of the OPEC+ deal prolongation is for the oil-producing countries both to stabilize oil prices at about $70 and not to lose too much market share, oil and gas analyst at market intelligence firm GlobalData Alessandro Bacci told Trend.
However, this is never an easy goal as higher prices permit US shale-oil producers to stay in the market, he said.
“The prolongation of the OPEC deal was expected as Saudi Arabia and Russia had previously reached a provisional agreement on the extension of the deal before the OPEC meeting and the OPEC and non-OPEC ministerial meeting held in Vienna on July 1 and July 2, respectively,” he added. “Despite Russia is not part of OPEC, Russia and Saudi Arabia’s combined petroleum strategy affects the decisions taken at the OPEC meetings as well.”
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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