Minister: Azerbaijan always supports OPEC+ activity
By Ayya Lmahamad
Azerbaijan always supports the activity of OPEC+ which owns an efficient and effective regulatory mechanism for stabilizing the world oil market, Energy Minister Parviz Shahbazov said, Azernews reports.
Underscoring that the trend of oil futures prices developing without being based on the demand-supply balance results in high volatility, decreased liquidity, and instability in the oil market, the minister stressed that this is undesirable for the oil market actors during the global energy crisis intensified by geopolitical factors.
"The trend of oil futures prices developing without being based on the demand-supply balance results in high volatility, and decreased liquidity and instability in the oil market. This is undesirable for the oil market actors during the global energy crisis intensified by geopolitical factors. I’m sharing my Saudi counterpart HRH Prince Abdul Aziz Bin Salman Al Saud’s concern in this regard and expressing my solidarity in terms of future initiatives within #OPECplus to minimize the consequences for the oil market, which is suffering the high volatility. #Azerbaijan always supports the activity of OPEC plus that owns an efficient and effective regulatory mechanism for stabilizing the world oil market." he wrote on his official Twitter page.
Since April 2020, OPEC and non-OPEC countries have entered into an agreement on the reduction of daily oil output volumes.
At the 19th Ministerial Meeting of OPEC and non-OPEC countries, 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 late 2022, with partial adjustments to the base level of oil production from May 2022.
The Declaration of Cooperation envisaged increasing daily crude oil production volume in Azerbaijan every month from August to the end of 2021 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, 718,000-barrel daily crude oil production in October 2018 in Azerbaijan will remain the base level for determining the output level next year.
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Ayya Lmahamad is AzerNews’ staff journalist, follow her on Twitter: @AyyaLmahamad
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