Minister: Azerbaijan supports OPEC's proposal to reduce oil production

Minister: Azerbaijan supports OPEC's proposal to reduce oil production
  • Clock-gray 16:25
  • calendar-gray 01 July 2019

Today at the 15th meeting of the Joint Monitoring Committee of Ministers of the OPEC Plus member countries in Vienna, it was proposed to extend the deadline for executing the Declaration of Cooperation to reduce oil production without changing the existing quotas for another 9 months, the Ministry of Energy told APA-Economics.

Azerbaijan's Energy Minister Parviz Shahbazov said that the oil price sharp decline was prevented as a result of the fulfillment of obligations under the Declaration of Cooperation adopted in December last year.

The price hike, meeting the interests of both producers and consumers, have been shaped: “However, starting from the end of May, we again observe a downward trend in oil prices. Despite forecasts for global oil demand growth of 1 mln. 140 thousand barrels this year compared to last year, there is a large amount of oil on the market. Oil reserves in the Organization for Economic Cooperation and Development (OECD) countries continue to grow. It is expected that the supply in the global oil market in the coming years will also exceed demand. Therefore, continuing the regulatory measures, it is necessary to extend the agreement on the limitation of oil production.”

In his speech, the Minister also noted that Azerbaijan in May and June fully fulfilled its obligations to reduce daily oil production by 20,000 barrels and that for 6 months of the agreement, the average daily oil production was carried out at 125%.

Energy Minister Parviz Shahbazov noted that Azerbaijan supports the proposal to extend the agreement.

It should be noted that the proposal to extend the deadline for reducing oil production for another 9 months will be discussed today at the 176th meeting of the OPEC Council of Ministers. Tomorrow a decision is expected at the 6th meeting of the ministers of the member states and non-members of OPEC.

APA-Economics

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