Azerbaijan supports OPEC+ decision on rising crude oil production

Oil&Gas Materials 4 December 2020 10:53 (UTC +04:00)
Azerbaijan supports OPEC+ decision on rising crude oil production

BAKU, Azerbaijan, Dec. 4

By Fidan Babayeva - Trend:

The 12th ministerial meeting of the member countries of the Organization of the Petroleum Exporting Countries (OPEC) and non-member countries decided to reduce daily crude oil production by 7.2 million barrels in January 2021, as well as through monthly ministerial meetings of OPEC+ countries adjustments to the increase, provided that it doesn’t exceed 500,000 barrels of daily production, Trend reports with reference to the Azerbaijani Ministry of Energy.

According to the ministry, Azerbaijan also supported the decision to increase crude oil production.

So, in January next year, OPEC countries will reduce daily crude oil production by 4.564 million barrels, and non-OPEC countries - by 2.636 million barrels.

According to the new Declaration of Cooperation, in January 2021, Azerbaijan's obligation will amount to 123,000 barrels.

That is, in January, Azerbaijan must maintain production at 595,000 barrels, increasing daily crude oil production by 8,000 barrels.

Speaking at the meeting, Azerbaijani Energy Minister Parviz Shahbazov noted that in the face of a new wave of the pandemic weakening the recovery in oil demand, the most optimal measure is still a coordinated activity to reduce production.

“Optimism in the oil market depends on our support. We must control supply until there is confidence in a recovery in oil demand. In this regard, a gradual easing of existing production restrictions and a gradual increase in production will help revitalize and balance the market in the new realities,” Shahbazov said.

During the meeting, Azerbaijan's commitment to the historic agreement signed by the OPEC + countries was once again emphasized.

At the same time, the historic victory of Azerbaijan, which led to the liberation of Azerbaijani lands from occupation and the end of the 30-year conflict, as well as put an end once and for all to threats to important energy infrastructure projects, was also highlighted at the meeting.

The role of Azerbaijan in regulating the oil market was highly appreciated by the Minister of Energy of Saudi Arabia, Prince Abdul Aziz bin Salman. He highly appreciated the efforts of Azerbaijan in the framework of OPEC + cooperation and thanked for the constructive activity.

The historic agreement, adopted on April 12 at the 10th meeting of the OPEC+ ministers, provides for the mitigation of commitments from January 2021 to the end of April 2022 by $1.9 million, that is, an overall reduction in crude oil production by 5,8 million barrels per day.