Weekly economic review (May 22-26)

Natig Aliyev: Current oil prices acceptable for Azerbaijan

Azerbaijan will support the proposal to prolong the agreement on reducing oil output between OPEC and non-OPEC countries, said Azerbaijan’s Energy Minister Natig Aliyev in his interview with the Caspian Energy magazine.

According to him, the Vienna agreement, signed in November 2016, was the first important joint agreement reached throughout the whole history of OPEC and non-OPEC states.

“The second significant advantage of this meeting was the determination of the method and mechanism of influencing the market by means of consecutive and agreed reduction of oil production. Monitoring and technical committees were established to study and control the market situation. They have already held two sessions this year. They gave positive conclusions about the fulfillment of these agreements and about the influence of undertaken obligations on the market. Thanks to it, the oil price remained practically stable within $50-55 per barrel starting from January,” noted the minister.

He said also that the current oil prices are acceptable for Azerbaijan.

“It is rather acceptable for Azerbaijan. Price stability and predictability is of great importance to us. We are the country which is certainly dependent on oil price at the world oil market as it is included into the calculation when setting the budget revenues. As you know, this year we have taken $40 as the basis. If the price stays at $50, it means that we are going to have a budget surplus during five months. It is rather a positive factor for our economy and is certainly of great importance,” he noted.

Aliyev also spoke about his expectations from the probable prolongation of the agreement.

“Minister of Energy, Industry, and Mineral Resources of Saudi Arabia Khalid Al-Falih has recently paid a two-day visit to Baku on my invitation. I should say that besides him I talked to ministers of Kuwait, Egypt and they are all quite optimistic. On the other hand, they highly appreciate the results of the reached agreements. I have not had relevant consultations with Iran, but I think that Iran will not also oppose the agreement in this case either,” said the minister.

“The way the OPEC members were going to settle this issue among themselves was their internal business. During my meeting with Saudi Arabian Minister Khalid Al-Falih we exchanged opinions, held consultations and agreed that at the next Vienna meeting we would speak for extension of the agreement as it gave such a positive effect – the producers are satisfied and the most important thing is that the global economy managed to absorb this prices. Then the minister left for Russia and Kazakhstan in order to reach agreement with these countries. I think his trip was successful. We also agreed that Azerbaijan would support the proposal to prolong the agreement until the end of the year.”

“It is a little bit harder with Kazakhstan’s position as it launched a new field Kashagan. And it is quite natural that the new field has to reach a certain rate of commercial production. But I think that Kazakhstan will find a solution for this problem. Russian Federation’s Energy Minister Alexander Novak has recently met with Khalid Al-Falih. In the course of the meeting it was offered to prolong the Vienna agreement for the following 9 months, namely till the end of the first quarter of 2018,” he said.

“I think that the results of the monitoring held by the technical committee will be announced at the next meeting fixed for May 25. Besides, there will be made certain conclusions regarding the trends and tendencies we are to face till the end of the year. I mean trends and tendencies on economic growth rates of continents and countries, the rate of current oil demand and supply, and whether there is a too high difference between supply and demand. I think each of us will make a suggestion how to make sure that oil supply does not exceed demand too much. After discussing these issues we will probably decide to prolong the agreement and in case of the necessity maybe we even will increase the production cut. The appeal to other countries to take adequate measures on oil production cut is also rather important,” said the Azerbaijani minister.

One thing is clear that everybody will gain if the price is preserved at $50-60 rate till the end of the year, according to Aliyev.

Subscribe to Trend in Google News! Subscribe
TAP updates on progress in market test
TAP updates on progress in market test
Physical gas flows, nominations at TAP’s interconnections
Physical gas flows, nominations at TAP’s interconnections
Azerbaijan boosts gas exports
Azerbaijan boosts gas exports
Loading Bars
Latest
Armenia’s failure to provide minefield maps to Azerbaijan impedes restoration work in liberated territories - FM
Azerbaijan sees no effective steps from Armenia in opening transport links - minister
Azerbaijan recommends revanchist forces not to go down wrong path - PM
TAP updates on progress in market test
Azerbaijan stands for normalizing relations with Armenia in post-conflict period based on int'l law - FM
Turkey reveals cargo traffic with Netherlands for 8M2021
Master plans for Zangilan, Gubadli, Kalbajar and Lachin being prepared, without taking any loans - Azerbaijani president
Khudaferin Bridge is proof of talent of Azerbaijani people - President Ilham Aliyev (VIDEO)
Physical gas flows, nominations at TAP’s interconnections
Return of Heydar Aliyev to power in Azerbaijan averted threat of losing independence again - president
Azerbaijan boosts gas exports
Azerbaijani people tirelessly walked towards victory - President Aliyev
Turkish FM tweets on marking Day of Restoration of Azerbaijan's Independence
Iranian currency rates for October 18
Kazakhstan sees rise in gold jewelry price
IRICA shares data on Iran’s export to neighboring countries
Azerbaijan gives update on mine clearance work on its liberated lands
Azerbaijan calls for urgent interim measures against Armenia
Bank of Georgia allocates funds to back project at local construction company
Each house in Fuzuli district's villages will have at least 12 acres of land - president
Azerbaijani First VP Mehriban Aliyeva shares post related to October 18 - Independence Restoration Day on Instagram (PHOTO)
Banks to start connecting Mir cards to Google Pay from October 26
Kazakhstan reveals main objectives of national agro-industrial complex project until 2025
Qatari companies might participate in restoration of Azerbaijan's liberated territories - FM
Gas price in Europe down to $980 per 1,000 cubic meters as trading opens
President Ilham Aliyev receives Turkish minister of labor and social security
President Ilham Aliyev receives delegation led by Deputy Prime Minister of State of Qatar
When I shared news of liberation of Fuzuli, whole world saw that we would complete our glorious mission - Azerbaijani president (FULL SPEECH)
Israel and UAE nearing free trade agreement
Coal’s share in Other non-OECD Asia’s generation mix to reach 50% in 2050
Iran increases raw steel exports
Azerbaijan prevents attempt to violate maritime state border (PHOTO)
Azerbaijani Cabinet of Ministers to soon issue proposals on raising social payments
Azerbaijan’s shares data on GDP growth for 9M2021
Uzbekistan, Tajikistan resume bus transportation
Iran's IRENEX discloses sales of Persian Gulf Fajr Energy Company
Georgia shares data on COVID-19 cases for October 18
Iran's Energy Exchange announces products to be on sale on October 18
Azerbaijan’s historic victory - beginning of new period in dev’t of both country and region as a whole - President Aliyev
Maintaining true independence much more difficult than gaining it - President Aliyev
Azerbaijan, Qatar sign agreement on mutual abolition of visas
President Ilham Aliyev addresses nation on occasion of 30th anniversary of restoration of independence
Press conference of Azerbaijani, Qatari FMs (PHOTO/VIDEO)
Weekly review of trading at Turkmenistan's commodity exchange
Georgia to hold discussion on 2022 state budget
Volkswagen's Skoda Auto halts production for two weeks
Serious steps must be taken in Iran regarding food security - Ministry of Health
Weekly review of Azerbaijani oil market
Azerbaijani FM receives his Qatari counterpart (VIDEO)
This year we celebrate October 18 with pride and happiness, having witnessed glorious history written by victorious Azerbaijani Army - Turkic Council's SecGen
Turkey reveals cargo traffic with Saudi Arabia for 8M2021
Iran’s Bahar Azadi gold coin price dips
Turkish Ambassador congratulates Azerbaijan on Day of Restoration of Independence
Iran’s CBI shares amount of currency sold at NIMA exchange rate
Israel significantly increases steel imports from Turkey in 9M2021
UN International Court of Justice to hold hearings on Azerbaijan’s claim against Armenia
Azerbaijani judo team finishes performance at tournament in Paris
Georgia and US plan to sign co-op agreement in field of defence
Kazakhstan's trade dynamics with TOP-3 CIS partners unveiled
Central Bank of Turkmenistan’s names TOP-3 banks with largest number of issued cards
Student opens fire in school near Perm
Students of Baku Higher Oil School to take part in NASA competition
Azerbaijani FM shares Tweet marking Day of Restoration of Azerbaijan's Independence
Oil prices climb as COVID recovery, power generators stoke demand
Azerbaijani judokas grab silver, bronze medals at European Cup
China's GDP expands 9.8 pct in first three quarters
Turkey to open logistics centers in several provinces by end of 2023 (Exclusive)
U.S. Secretary of State Blinken discusses Afghanistan with Qatar
1,642 more COVID-19 cases reported in Kazakhstan
Heads of Japan major parties to hold debate ahead of key election
Israel reports rise in cyberattack attempts against hospitals
Erdogan arrives in Angola in first leg of Africa tour
Facebook plans to hire 10,000 in EU to build 'metaverse'
At least one dead, several injured in shooting incident in U.S.
UK to fund new nuclear power station as part of net zero drive
Former U.S. president Clinton released from hospital
U.S. administers 408.3 mln doses of COVID-19 vaccines - CDC
French ambassador leaves Belarus - embassy
Google dedicates doodle to Azerbaijan's Restoration of Independence Day
Chronicles of Victory: President Aliyev announces that Azerbaijan's armed forces raised Azerbaijan's flag over ancient Khudaferin Bridge (VIDEO)
Chronicles of Victory: October 18, 2020
Georgian CEC calls on public to participate in October 30 municipal run-offs
Turkey expresses interest in expanding activities of Turkish companies in Kyrgyzstan
Helicopter crash kills three in Germany
We will return IDPs who suffered for 30 years to their native lands as soon as possible - Azerbaijani president
Heydar Aliyev did not allow referendum on preserving Soviet Union to be held in Nakhchivan - Azerbaijani president
It is completely inappropriate to celebrate 18 October with great pomp, says Azerbaijani president
UK records more than 40,000 COVID cases for fifth day in a row
Cargo movements in Iran’s Qeshm port up
Amendments on national holidays are fully consistent with historical truth and historical justice - Azerbaijani president
First Vice-President Mehriban Aliyeva makes Instagram post on visit to Fuzuli district (PHOTO)
Georgia faces fifth Covid-19 wave, observing recommendations much needed, NCDC Head says
UNHCR opens alternative route of aid to Afghanistan via Uzbekistan
Azerbaijan allocates funds for construction of Fuzuli Memorial Complex
Master plans for our other cities – Zangilan, Gubadli, Kalbajar and Lachin – are being prepared - Azerbaijani president
Azerbaijani economy grown by about 5%, non-oil industry by about 20% for first nine months - President Aliyev
Large settlement will be created in Dovletyarli village on the basis of a “smart village” concept - Azerbaijani president
We are bringing much closer day when former IDPs to their native lands - President Aliyev
Projects already implemented in Fuzuli show both our intentions and potential - Azerbaijani president
We will restore city of Fuzuli and villages of Fuzuli District - President Aliyev
All news