Azerbaijani Energy Ministry talks of OPEC+ agreement

Oil&Gas Materials 13 March 2020 14:58 (UTC +04:00)
Azerbaijani Energy Ministry talks of OPEC+ agreement

BAKU, Azerbaijan, March 13

By Nargiz Ismayilova - Trend:

Despite numerous negotiation attempts, no agreement was reached to reduce daily oil production by more than 1.5 million barrels, Head of the press service of Azerbaijan’s Ministry of Energy Zamina Aliyeva told Trend on March 13.

Aliyeva added that in conditions of weakening global economic development caused by the coronavirus and global demand for oil, the energy market needed the support of OPEC+.

“This not only deprived the oil market of its current support, but also increased the pressure on oil prices, which have declined. Currently, oil prices reflect a reaction to market uncertainty and information. New consultations are ongoing, and Azerbaijan is also making efforts to resolve this issue,” the press service’s head said.

Aliyeva also said that as an initiator of the format of cooperation and an active participant in the process of regulating the oil market, Azerbaijan has always contributed to creating a balance of supply and demand, and price stability.

“This time Azerbaijan, supporting the OPEC proposal to reduce oil production by 1.5 million barrels per day in order to stabilize the market, took an active part in the negotiations in Vienna (Austria). Azerbaijan was involved in the consultation process between Russia and Saudi Arabia to achieve reconciliation. Azerbaijan not only declared its readiness to take on additional obligations, but also called on OPEC+ members to maintain solidarity and unite around the goal of creating stability in the market. And now the country is ready to support the efforts of energy countries outside the cartel to reach consensus,” the press service’s head noted.

OPEC countries recommended an additional reduction in oil production by 1.5 million barrels per day until the end of 2020. However, at the March 6 meeting, the OPEC+ countries failed to agree on either an additional reduction or extension of transactions under current conditions. As a result, on April 1, 2020, the restrictions will expire.

At the VII meeting of the OPEC and OPEC+ ministers (oil exporting countries that are not members of the OPEC organization), on December 6, 2019, a decision was made to reduce OPEC+ oil production by 500,000 barrels per day. In accordance with the new "declaration of cooperation", Azerbaijan’s obligations were increased by 7,000 barrels and determined at the level of 27,000 barrels. Until the end of the first quarter of 2020, Azerbaijan should maintain daily oil production in the amount of 769,000 barrels.


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