Azerbaijan is ready to contribute to the process of global regulation of the oil market by taking part in the planned meeting of the ministers of OPEC and countries outside the cartel in the format of a video conference for stabilizing the oil market, Trend reports with reference to the country's Ministry of Energy.
According to the report, the world oil market is currently facing difficulties associated with a sharp decline in global demand for oil and an increase in oil reserves due to a decrease in economic activity.
“Thus, the decrease in global demand for oil is estimated at about 10-15 million barrels per day. During the month, daily demand is expected to drop by 20 million barrels, and due to a surplus of supplies in the coming months, the oil depots will be completely full. In such a situation, the restoration of discussions in the format of OPEC+ and a return to the regulatory mechanism is important for the global oil market,” said the report.
The ministry said that solidarity and cooperation between oil producers is the only way out of the situation when the oil market is not supported by economic factors.
The ministry added that Azerbaijan is at a new stage in the process of regulating the oil market.
Current problems negatively affect not only OPEC+ countries, but also countries outside this format, said the report.
“Therefore, it is considered that countries outside the OPEC+ should also participate in this process in order to gradually create a balance in the oil market. In the case of cooperation between OPEC and the countries outside the cartel, a new regulatory model will be formed first ever in a wide format,” the report said.
Thus, a more effective and fair regulatory mechanism may appear on the oil market, as a result of which equilibrium will be restored and oil market prices will stabilize, said the report.
"It is hoped that the OPEC + countries will take steps to translate this unique opportunity into an important decision. Azerbaijan, as a country that has played an important role in the creation and implementation of the format of OPEC + solutions, is ready to continue supporting the process of regulating the oil market and taking on new obligations. At the same time, Azerbaijan, presenting a united position at the upcoming meeting, calls on all oil countries to provide joint support to the oil market," the report said.