Azerbaijan's long-term commitment to cut crude oil output ends

At the 30th Ministerial Meeting of OPEC and non-OPEC countries, Azerbaijan also supported the decision to increase daily oil production by 648 thousand barrels in August.

In accordance with quotas determined over August, it is envisaged to increase daily crude oil production by 11 thousand barrels to 717 thousand barrels, the reduction obligation is expected to finalize.

These are the final reductions on daily crude oil production for OPEC + countries in the framework of the phased implementation of the historic agreement adopted in April 2020 to restore the balance of supply and demand amid the recession in the oil market. The large-scale commitment of the participants of the Declaration of Cooperation, including Azerbaijan, for a period of more than two years, has been in force since May 2020, envisaging a reduction of a total of 9.7 million barrels of daily crude oil production in the first phase, 7.7 mln. barrels in the second stage and 5.8 mln. in the third stage expires at the end of August this year.

During this period, OPEC + has gradually implemented production constraints by regularly adjusting its production limits. The new decision stipulates that the countries participating in the Declaration of Cooperation will produce 43,854,000 barrels of crude oil per day in August. This will allow production to resume at the level of October 2018, when the cuts were made.

It should be noted that the decision to complete nearly 5.8 mln. barrels reductions in September 2022 and to extend the Declaration of Cooperation until the end of this year was made at the 19th meeting in July last year.