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EIA increases forecast for Azerbaijan’s oil production volume in 2021-22

11 March 2021 17:33 (UTC+04:00)
EIA increases forecast for Azerbaijan’s oil production volume in 2021-22

By Ayya Lmahamad

The U.S. Energy Information Administration has increased its forecast for Azerbaijan’s average daily oil production for 2021-2022.

In the report released in March, the agency increased its forecast by 40,000 barrels to 770,000 barrels of average daily oil production for 2021. According to the report published in February 2021, the agency forecasted daily oil production to be 730,000 barrels in 2021.

Moreover, the agency also increased its report of Azerbaijan’s daily oil production for 2022 from 780,000 barrels to 820,000 barrels.

Likewise, according to the EIA’s Short-Term Energy Outlook report, the average daily oil production in Azerbaijan is projected to be 750,000 barrels in the first quarter of 2021.

Average daily oil production was at the level of 710,000 barrels in 2020. Thus, the average daily oil production in Azerbaijan was 770,000, 700,000, 670,000 and 690,000 barrels in the first, second, third and fourth quarters of 2020 respectively.

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.

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 was reduced by 7.7 million barrels, which is 18 percent less than in October 2018.

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 the increase in daily production provided, that it does not exceed 0.5 million barrels, through monthly OPEC+ Ministerial Meetings. Azerbaijan’s commitment, according to the new “Declaration on Cooperation”, was 123,000 barrels in January 2021. Thus, in January, Azerbaijan has to increase daily oil production by 8,000 barrels and keep production at the level of 595,000 barrels.

Additionally, at the 13th Ministerial Meeting of the OPEC+ countries, it was decided to continue the existing quotas on daily crude oil production in February-March, and later, at the 14th Ministerial Meeting to continue with the existing quotas on daily crude oil production in April.

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

Follow us on Twitter @AzerNewsAz

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