EIA changes forecast for volume of Azerbaijan's oil production in 2021

12 November 2020 16:24 (UTC+04:00)

By Ayya Lmahamad

The U.S. Energy Information Administration has changed its forecast for Azerbaijan's average daily oil production for 2021.

In the report released in November, the agency decreased its forecast for Azerbaijan's daily oil production for 2021 by 100,000 barrels to 730,000 barrels.

It should be noted that according to the report published in October, the Agency forecasted daily oil production to be 740,000 barrels in 2021.

Moreover, the Agency forecasted Azerbaijan's daily oil production to be at 710,000 barrels in 2020, same as in the report from October.

Likewise, according to the EIA's Short-Term Energy Outlook report, average daily oil production in Azerbaijan was 770,000, 700,000 and 670,000 barrels in the first, second and third quarters of 2020 respectively.

In the meantime, average daily oil production is projected to be 690,000 barrels in the fourth quarter of 2020.

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

Thus, according to the “Declaration on Cooperation”, Azerbaijan produced 718,000 barrels of crude oil per day in October 2018, while in May-July 2020, the country had to maintain the average daily production of crude oil at 554,000 barrels.

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.

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Ayya Lmahamad is AzerNews’ staff journalist, follow her on Twitter: @AyyaLmahamad

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