Azerbaijan’s energy minister: It is important to continue expanding OPEC+ format

Oil&Gas Materials 2 July 2020 15:38 (UTC +04:00)
Azerbaijan’s energy minister: It is important to continue expanding OPEC+ format

BAKU, Azerbaijan, July 2

By Leman Zeynalova – Trend:

It is important to continue expanding the OPEC+ format, said Azerbaijan’s Energy Minister Parviz Shahbazov, Trend reports.

He made the remark during the international conference titled “Global Energy and International Political Risks” held by the Valdai Discussion Club and Azerbaijan’s Center for International Relations Analysis.

“In this extraordinary situation, the main mission of producing countries is to ensure OPEC+ format functioning as a stable and efficient mechanism of fulfilling the obligations. Stability in the oil market is in the interest of all its participants. That’s why I think it is important to continue to expand the OPEC+ format by attracting other producing countries,” said the minister.

Shahbazov believes that the three-months result of OPEC+, including July will become the foundation for next steps.

Azerbaijan is committed to its obligations and will continue to play its role in ensuring stability in the oil market, he added.

Talking about the overall situation in the energy market, Azerbaijan’s energy minister noted that COVID-19 is one of the key drivers of changes in the global energy system.

“Global energy system has for a long time been developing in a totally different environment, in a more sustainable, predictable and definite environment. In the situation of price war and the pandemic, the world has faced a situation when the forecast for economic growth and the oil demand for 2020 became unrealistic. Today’s geopolitical risks immediately impact the price of oil. The oil market is becoming unpredictable. And there is uncertainly when the supply and demand balance will be restored,” he added.

At the same time, the slowdown of the global economy and reduced economic activities do put a serious pressure on demand, he said.

“It is expected that in the second half of the year this downtrend will be reduced. In a situation of uncertainty, we cannot expect that the demand will come back. According to some estimates, we will need at least two years to stabilize the market,” said Shahbazov.


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