At the 24th Ministerial Meeting of OPEC and non-OPEC countries, Azerbaijan also expressed its support to the decision made on increasing daily oil production by 400,000 barrels in February in order to support stability and balance in the global oil market, Ministry of Energy told APA-Economics.
The new "Declaration of Cooperation" envisages an increase in daily crude oil production in Azerbaijan by 7,000 barrels in February to reach 668,000 barrels, while the reduction commitment is 50,000 barrels.
It should be reminded that at the 19th meeting of the ministers of OPEC plus countries held in July, starting from August, the decision was made to increase the daily crude oil production by 400,000 barrels per month, complete the cuts in the volume of 5.8 million barrels in September 2022 and extend the term of the “Declaration of cooperation” by the end of 2022 with partial adjustments to the base level of oil production from May next year.
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OPEC+ agreed on Tuesday to stick to its planned increase in oil output for February, four sources from the group told Reuters, because it expects the Omicron coronavirus variant to have a short-lived impact on demand, APA reports citing Reuters.
The group of producers comprising the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia has raised its output target each month since August by 400,000 barrels per day (bpd).
The United States has urged the group to pump more crude to help the global economic recovery from the pandemic and cool prices as they trade near $80 a barrel. But the group has said the market was balanced and did not require any extra oil.
OPEC+ is unwinding record production cuts of 10 million bpd, which were imposed in 2020, as demand and prices recover from their pandemic-induced slump. Brent crude rose 50% last year and has rallied so far in 2022, trading above $79 on Tuesday.
Current plans would see OPEC+ again raise the target by 400,000 bpd for February, leaving about 3 million bpd in cuts to unwind by September, in line with an agreement last July.
In a technical report seen by Reuters on Sunday, OPEC+ played down the impact on demand from the Omicron variant, saying it would be "mild and short-lived" and was upbeat about economic prospects.
"This is in addition to a steady economic outlook in both the advanced and emerging economies," the Joint Technical Committee report said.
OPEC+ will hold its next meeting on Feb. 2, sources said.
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