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Azerbaijan supports the extension of the deal on oil production cuts

01 December 2017 01:29 (UTC +04:00)

OPEC and non-OPEC producers led by Russia agreed on Thursday to extend oil output cuts until the end of 2018 as they try to finish clearing a global glut of crude while signaling a possible early exit from the deal if the market overheats, APA-Economics reports.

Azerbaijan supported the extension of the deal on oil production cuts until the end of 2018, which was agreed at OPEC meeting in Vienna, Energy Minister of Azerbaijan, Parviz Shahbazov said, APA-Economics reports quoting Azerbaijan's Ministry of Energy.

Energy Minister of Azerbaijan, Parviz Shahbazov said that the meeting participants examined the situation that has been observed in the world oil market over the year since the signing of the Vienna agreement.

"There were made presentations on the pace of global economic development, expectations, demand for oil and oil products. OPEC officials assessed the level of fulfillment of the commitments by the countries that signed the agreement. The stabilization of oil prices and their growth to the level of $60-63, the reduction in supply on the market and oil reserves, as well as the relative stabilization on the market were recognized as the results of cooperation in the framework of OPEC + deal. Thus, given that the problems that required the signing of the Vienna Agreement have not been completely eliminated, the OPEC Monitoring Committee put forward a proposal to extend the agreement after the first quarter of 2018, which was unanimously supported.The countries' commitments to reduce production were maintained at the same level, "Shahbazov said.

The minister noted that in the short term there is no forecast of an increase in demand, which is an important factor for price stability on the market.

The prices should be strongly supported so that they maintained in the current range, Shahbazov said.

He stressed that the participation of new countries in this process is an important step for the promotion of the process , further noting that Azerbaijan supports the initiatives since the first days and fully fulfills its obligations to reduce oil production by 35,000 barrels per day."Our position, as the Azerbaijani state, is that the extension of the agreement on the oil production reduction by the end of next year is appropriate, and this decision can strengthen the results achieved in the oil market by making them more long-term," Shahbazov said.