By Ayya Lmahamad
JP Morgan Bank forecasts that Azerbaijan's crude oil production will reach 615,000 barrels per day by 2021, Day.az has reported.
According to the bank's estimates, Azerbaijan produced 593,000 bpd and 598,000 bpd of crude oil in the first and second quarters of the year, respectively.
Moreover, the forecasts for the third and fourth quarters are 623,000 bpd and 647,000 bpd, respectively.
Furthermore, the report says that Azerbaijan produced 593,000 bpd in January and February, 592,000 bpd in March, 594,000 bpd in April, 590,000 bpd in May and 610,000 bpd in June and July of 2021.
Additionally, the country was forecasted to produce 627,000 bpd in August, 633,000 bpd in September, 640,000 bpd in October, 647,000 bpd in November and 654,000 bpd in December 2021.
Since April 2020, OPEC and non-OPEC countries have entered into an agreement on the reduction of daily oil production volume. Earlier, Azerbaijan supported the decision to increase daily crude oil output by 400,000 barrels per month in August-December 2021 and to extend the Declaration of Cooperation until the end of 2022, with partial adjustments to the base level of oil production from next May, at the 19th ministerial of OPEC and non-OPEC countries.
The new Declaration of Cooperation envisages increasing daily crude oil production volume in Azerbaijan every month from August to the end of the year and reducing the obligations related to cuts accordingly.
Moreover, from May 2022 to the end of the year, the calculation of Azerbaijan's oil production obligations will be continued on the basis of the existing base. In other words, the 718,000-barrel daily crude oil production in October 2018 in Azerbaijan will remain at the base level for determining the output level next year.
Ayya Lmahamad is AzerNews’ staff journalist, follow her on Twitter: @AyyaLmahamad
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