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Azerbaijan supports OPEC+ decision to increase oil production in January

Azerbaijan has supported the decision of OPEC + to increase oil production by 0.5 million barrels in January 2021, Energy Ministry has reported.

It should be noted that at the 12th Ministerial Meeting of OPEC and non-OPEC countries, it was decided to reduce the daily production of crude oil by 7.2 million barrels in January 2021 and to regulate increase in daily production provided, that it does not exceed 0.5 million barrels, through monthly OPEC+ Ministerial Meetings.

According to the new agreement, OPEC countries will reduce the daily production of crude oil by 4,564 mb/d, and non-OPEC countries by 2,636 mb/d in January next year.

Azerbaijan’s commitment, according to the new “Declaration on Cooperation”, will be 123,000 barrels in January 2021. Thus, in January, Azerbaijan must increase daily oil production by 8,000 barrels and keep production at the level of 595,000 barrels.

Speaking at the meeting, Azerbaijan Energy Minister Parviz Shahbazov noted that the most optimal measure is the continuation of the well coordinated adjustment activities to reduce production in the case of a new wave of pandemic, which weakened the demand for oil.

“The sustainability of the current optimism of the oil market depends on our support. We must control the supply until there is confidence that oil demand will recover. In this regard, the gradual easing of existing production restrictions and a gradual increase in production will provide an opportunity to revive and balance the market,” the minister said.

Moreover, he once again emphasized Azerbaijan’s commitment to the historic agreement signed by the OPEC+ countries. In addition, it was noted that Azerbaijan’s historical victory, which resulted in the liberation of occupied territories and the end of a 30-year conflict, put an end to the threats to important energy infrastructure projects.

Additionally, Saudi Arabia Energy Minister Prince Abdul Aziz bin Salman highly appreciated the role of Azerbaijan in regulating the oil market at the meeting. Stressing the efforts of Azerbaijan within the OPEC plus cooperation, he thanked for constructive activity.

It should be noted that in April 2020, OPEC and non-OPEC countries entered into an agreement on the reduction of daily oil production by 9.7 million barrels in May-June and 164,000 barrels for Azerbaijan.

On July 31, the first phase of the OPEC+ agreement of April 12 to reduce daily oil production by 9.7 million barrels was completed.

In the second phase of the agreement, covering the period from August 1 to December 31, the daily production of crude oil in OPEC+ countries will be reduced by 7.7 million barrels, which is 18 percent less than in October 2018.
Source: Azernews

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