Azerbaijan has supported the proposal to extend the deadline for reducing oil production

Today at the 15th meeting of the Joint Ministerial Monitoring Committee 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.

Speaking at the event, the Minister of Energy Parviz Shahbazov noted that as a result of over fulfilment of obligations under the Declaration of Cooperation, adopted in December last year, a sharp drop in oil prices was prevented.

A price margin was also formed, which meets the interests of both producers and consumers: “However, since 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 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 term of the agreement on the limitation of oil production,” the Minister added.

In his speech, the Minister also noted that Azerbaijan in May and June completely 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%.

The Minister of Energy 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 Ministerial meeting of the OPEC Council. Tomorrow a decision is expected at the 6th meeting of the ministers of the member states and non-members of OPEC.