OPEC revises down Azerbaijan’s oil output forecasts
Baku, Azerbaijan, Oct.10
By Leman Zeynalova – Trend:
OPEC has revised down Azerbaijan’s oil production forecasts for the third quarter of 2019 from 0.80 million barrels per day to 0.79 million barrels per day, Trend reports citing the October Oil Market Report of the cartel.
“Azerbaijan’s liquids output in August fell by 0.03 mb/d m-o-m to average 0.77 mb/d. Crude oil output was down by 18 tb/d m-o-m to average 0.68 mb/d as production was affected by maintenance. Therefore, the oil production estimate for 3Q19 has been revised down by 12 tb/d to 0.79 mb/d, lower by 0.01 mb/d y-o-y,” said OPEC.
For 2019, oil supply in Azerbaijan, following a downward revision by 12,000 b/d in 3Q19, is expected to average 0.79 mb/d, representing a contraction of 0.02 mb/d, according to the report.
For 2020, production is forecast to show minor growth of 0.01 mb/d, averaging 0.79 mb/d.
Since 2019, Azerbaijan has been committed to reducing oil production by 20,000 barrels per day compared to September 2018, i.e. to the level of 776,000 barrels per day.
In late 2018, OPEC and a number of countries outside this organization (OPEC+ format) decided to modernize the terms of the agreement on the reduction of oil production, in force from the beginning of 2017. The countries agreed to reduce the total production by 1.2 million barrels per day from the level of October 2018.
On July 2, 2019, a decision was made in Vienna to extend the agreement on reducing oil production by OPEC member and non-member states until the end of the first quarter of 2020.
Follow the author on Twitter:@Lyaman_Zeyn