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Azerbaijan agrees extension to oil output cuts

06 June 2020 21:35 (UTC +04:00)

At the 11th meeting of the Ministers of the Organization of the Petroleum Exporting Countries (OPEC) and non-member countries in a video conference, daily oil production was estimated at 9.7 million barrels. It was decided to extend the current quota for another month until the end of July, the Ministry of Energy told APA.

It was agreed that the countries that did not fully fulfill their obligations in May-June will compensate for this with the production figures for July, August and September. Until December 2020, it is necessary to hold monthly meetings of the Joint Ministerial Monitoring Committee (JMC). The next meeting of the Joint Monitoring Committee of Ministers is scheduled for June 18.

Thus, in July, OPEC countries increased daily oil production by 6.084 million barrels. barrels, and non-OPEC countries - 3.616 million. will reduce the barrel. Saudi Arabia, the UAE, Kuwait and Oman added about 1.2 million barrels of oil per day. will reduce the volume of the barrel.

According to the new "Declaration of Cooperation", Azerbaijan must fulfill its commitment of 164,000 barrels in May-June and maintain daily crude oil production at 554,000 barrels.

Speaking at the meeting, Energy Minister Parviz Shahbazov expressed Azerbaijan's support for the decision to extend the existing production restrictions due to the imbalance between the crisis and supply in the oil market. The minister said that a sensitive and flexible approach to production regulation should continue until economic activity, which increases demand for oil, and the balance in the market is restored. "Supporting all initiatives aimed at stabilizing the oil market within the OPEC plus format, Azerbaijan achieved a high level of fulfillment of its obligations in May."

During the discussions, the chairman of the meeting praised the role of the Minister of Energy of Saudi Arabia, Prince Abdul Aziz bin Salman, in regulating the oil market of Azerbaijan.

It should be noted that the historic agreement reached at the 10th meeting of OPEC plus ministers on April 12 will increase daily crude oil production by 9.7 million barrels per day in May-June. barrels, 7.7 million in July-December. barrels, 5.8 million barrels from 2021 to the end of April 2022. provided for the reduction of barrels.