BAKU, Azerbaijan, October 19. OPEC+ decision to cut oil production is aimed at maintaining stability in the oil market, Minister of Energy of Azerbaijan Parviz Shahbazov said, while commenting on the 'Declaration of Cooperation' adopted by the OPEC+ countries on October 5, Trend reports citing Azerbaijan's Ministry of Energy.
The minister noted that currently the supply and demand balance in the oil market has been affected by numerous factors.
"It's predicted that the oil demand well decrease. In such a situation, the decision to intervene with the output is inevitable. OPEC+ took such a step based on its experience in order to maintain a balance in the market. This is a decision made on the basis of consensus, not arising from the individual interest of any country. All decisions of OPEC+ are based on stability in the market. The results and achievements gained so far in complex situations are undeniable proof of this," he said.
"Recently, there have been various opinions that the OPEC+ decision to cut oil production by two million barrels per day from November will lead to a shortage in the oil market," he stated.
Shahbazov noted that, currently, the balance of supply and demand in the oil market is influenced by many factors.
"The forecast shows decline in future demand for oil. In such situation, the decision to intervene with the output was inevitable. OPEC+ took such a step based on its experience in order to maintain a balance in the market," he said.
Shahbazov also stressed that today the main threat to the balancing and stability of the market is not controlled cuts, but natural reductions in production.
"I think that today we must worry about the reduction amounts announced by OPEC+ but, naturally, the trend towards a decrease in the production.The latest decision of OPEC+ is aimed at attracting investment flows, compensating for the expected negative mood, which is an important step in the future to prevent oil shortages and price volatility," he added.
Shahbazov noted that thanks to the OPEC+ regulatory instrument, the oil market has been provided with constant support in comparison with other energy markets.