The Ministry of Energy appreciates the decision of the ministers of "OPEC plus"

The agreement, reached the 10th meeting of "OPEC plus" ministers, is historic for oil producers, consumers, and the global economy in general.  For the first time ever, a two-year decision with significant production cuts was reached in this format, which met global support. These steps taken within "OPEC plus" support the oil market in several directions. First of all, all the obstacles to the implementation of the decision on production cuts will be removed on 1 May. Secondly, the importance of this decision is not limited by the 9.7 million barrels per day production cut in May-June by "OPEC plus". At the same time, Saudi Arabia, Kuwait, and the UAE will not produce the 2.7 million barrels per day, planned for April. In addition, this decision also encourages other countries outside the "OPEC plus" format to reduce production and for the first time, other major oil producers are also involved in this process. The USA undertaking 300 thousand barrels out of Mexico`s obligation is an example. Major oil producers such as the US, Canada, Indonesia Norway, and Brazil would voluntarily reduce their production by 4-5 million barrels per day, demonstrating solidarity with "OPEC plus" countries. Thus, given the fact that the daily crude oil production in Iran, Venezuela and Libya will decrease by 2.8 mln barrels, in total, 20 mln barrels less oil will enter the global oil market per day from May 1 within the initiative that started with "OPEC plus" and supported but other countries. This is a huge contribution to the oil market and the price stability of oil in a situation in which the coronavirus pandemic sharply weakened the global demand for oil.

Having played an important role in creating balance in the oil market since the beginning, Azerbaijan has made every effort to ensure reconciliation among the oil countries. The contribution of Azerbaijan to this process was highly appreciated by the Minister of Energy of Saudi Arabia Prince Abdul Aziz bin Salman at yesterday's meeting. Thanking the countries, he especially expressed gratitude to Azerbaijan for its position, an active role in the consultation process, which the country demonstrated during the meetings held on March 6 and on April 9.

Azerbaijan will continue its contribution to the process of balancing the oil market by fulfilling its obligations since May.

According to the amendment to the "Declaration of Cooperation", quotas on daily oil production in "OPEC plus" countries amounted to 9.7 million in May-June. After that, production will be cut by 7.7 million barrels a day from 1 July to the end of the year. From January 2021 until April 2022 oil output will be reduced by 5.8 million barrels per day.