Azerbaijan not to increase oil production until OPEC+ agreement expiry
By Ofeliya Afandiyeva
The Azerbaijani Energy Ministry is still following the current situation in the oil market and no decision has been made so far to increase oil production in the country, the Spokesperson of the Azerbaijani Energy Ministry and Advisor to Azerbaijani Energy Minister Zamina Aliyeva told, local media reported.
“At present, we are not taking any steps individually. After the expiry of the OPEC + Countries’ Oil-Cuts Agreement, the issue of increasing oil production in the country remains open. We are following how events will develop until April 1”, Aliyeva mentioned.
As reported, no agreement was reached on the results of the OPEC + meeting of the member states on March 6.
Moreover, as a result of March 5 meeting, OPEC recommended increasing oil production cuts by 1.5 million barrels per day only for the second quarter and extending current restrictions by 1.7 million barrels.
In addition, Saudi Arabia has doubled rates by agreeing with OPEC countries to reduce its oil production by 1.5 million barrels for all 2020, as a consequence of not reaching consensus with Russia - its main partner in the OPEC + deal, which involves a joint reduction in the oil production.
Note that, the 178th (Extraordinary) Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) and the 8th ministerial meeting of OPEC and non-OPEC countries took place in Vienna on March 5-6.
It noted the positive ramifications of the decision to further voluntarily adjust production at the 177th Meeting of the Conference (05.12.2019) and subsequently the 7th OPEC and non-OPEC Ministerial Meeting (06.12.2019), with market sentiment improving in the weeks thereafter.
However, the COVID-19 outbreak has had a major adverse impact on global economic and oil demand forecasts in 2020, particularly for the first and second quarters. Global oil demand growth in 2020 is now forecast to be 0.48 million barrels per day, down from 1.1 million barrels per day in December 2019. Moreover, the unprecedented situation, and the ever-shifting market dynamics, means risks are skewed to the downside.
The Conference noted that the further impact of the COVID-19 outbreak on oil market fundamentals necessitates further continuous monitoring.
The Conference commended all OPEC Member Countries, as well as non-OPEC countries participating in the Declaration of Cooperation, for their continued commitment to achieving and sustaining balance and stability in the market.
Member Countries reaffirmed their continued focus on fundamentals for a stable and balanced oil market, in the interests of producers, consumers, and the global economy. The Conference emphasized the ongoing dialogue with consuming countries, and the consultations undertaken in a collegial spirit before reaching decisions. Member Countries are resolute and committed to being dependable and reliable suppliers of crude and products to global markets.
The Conference confirmed that its next Ordinary Meeting will convene in Vienna, Austria, on 9 June 2020, and noted that September 2020 will mark the 60 Year Anniversary since the founding of OPEC in Baghdad in 1960.
---
Follow us on Twitter @AzerNewsAz