Azerbaijan supported OPEC Plus's decision to increase production by 500 thousand barrels per day in January 2021

At the 12th Ministerial Meeting of OPEC and non-OPEC countries, it was decided to cut daily crude oil production by 7.2 mln. barrel for January 2021 and to regulate increase in daily production provided that it does not exceed 0.5 million barrel through monthly OPEC plus Ministerial Meetings.  Beginning in January 2021, Azerbaijan also supported the decision to increase production by 0.5 mb/d.

Thus, in January next year, OPEC countries will reduce to produce crude oil by 4,564 mb/d, non-OPEC countries 2.636 mb/d. According to the new Declaration of Cooperation, in January 2021, Azerbaijan's commitment will be 123 thousand barrels.  In other words, in January, Azerbaijan should increase its daily crude oil production by 8,000 barrels and keep production at the level of 595,000 barrels.

Speaking at the meeting, Minister of Energy Parviz Shahbazov said that the most optimal measure is the continuation of the well coordinated adjustment activities to reduce production in the case of a new wave of pandemics, which weakened the demand for oil: “The sustainability of the current optimism of the oil market depends on our support. We must control the supply until there is confidence that oil demand will recover. In this regard, the gradual easing of existing production restrictions and a gradual increase in production will provide an opportunity to revive and balance the market.

It was once again emphasized that Azerbaijan is commited to the historic agreement signed by OPEC plus countries. At the same time, Azerbaijan’s historical victory, which resulted in the liberation of occupied territories and the end of a 30-year conflict, put an end to the threats to important energy infrastructure projects.

It should be noted that  the Minister of Energy of Saudi Arabia Prince Abdul Aziz bin Salman highly appreciated the role of Azerbaijan in regulating the oil market at the meeting. Stressing the efforts of Azerbaijan within the OPEC plus cooperation, he thanked for constructive activity.

It should be reminded that the historic deal adopted at the 10th Ministerial Meeting of OPEC plus on April 12 envisaged to ease commitments of agreement by 1.9 mln barrels  and to cut the daily crude oil output by 5.8 million barrels from 2021 to April 2022.