By Mirsaid Ibrahimzade
The high level of fulfillment of countries’ commitments under OPEC+ had a positive impact on the world oil market and oil prices.
Parviz Shahbazov, Azerbaijan’s Energy Minister, told reporters on the sidelines of the Future Leaders Forum of the World Petroleum Council in St. Petersburg that it is necessary to extend the OPEC+ deal under the same conditions.
Shahbazov stated that the format, decisions and agreements which had been reached in the first six months of 2019 should be continued.
“This is a minimum program. If nothing happens, then it would be right to continue with what we have,” the minister noted.
He said that there are no barriers to this and added that it is necessary to wait for the upcoming July 1-2 meeting of OPEC+, where a decision will be made.
Emphasizing that consensus has been reached, Parviz Shahbazov pointed that more things will be clarified at the meeting and it will be possible to analyze how the market responded to all economic or geopolitical events within last months.
Then, he stressed that Azerbaijan will fulfill the terms of the deal in the first half of the year. To date, the country has reduced production in accordance with the quota – by 2.5 percent, that is, by 20,000 barrels per day, he said.
The deal to reduce production by 1.2 million barrels per day was concluded in December 2018 and ends on June 30. The issue of extending the deal and determining the volume of quotas for production cuts will be discussed in Vienna at the upcoming July 1-2 ministerial meeting, in which Shahbazov will also take part.
The meeting will be decisive to determine whether the production cut deal will be extended by OPEC members and those who aren’t part of this organization. The meeting participants must also decide what the conditions for this reduction will be.
It is noteworthy that earlier speaking at OPEC 14th Meeting of the Joint Ministerial Monitoring Committee (JMMC), Azerbaijan’s Energy Minister stated that the country fulfilled its commitments on reduction oil production under the OPEC+ agreement in January-April 2019 for 130 percent.
Mirsaid Ibrahimzade is AzerNews’ staff journalist, follow him on Twitter: @MirsaidIbrahim1
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