Azerbaijan supported the agreement reached at the 14th meeting of the OPEC + ministers on the extension of the current quotas for daily oil production in April 2021.
As reported by haqqin.az with reference to the Ministry of Energy, Azerbaijan once again emphasized the importance of the activities of oil producers on the basis of consensus within the framework of the “Declaration of Cooperation” to maintain positive dynamics in the oil market amid the uncertainty caused by the pandemic. Energy Minister of Azerbaijan Parviz Shahbazov stressed that the oil market is relatively balanced compared to previous periods, but the risks have not yet been eliminated. The minister said a cautious approach to the regulatory process remains relevant.
“The current rise in prices is more driven by the current global situation than by the demand for oil. When the rise in oil prices is related to demand and is based on fundamental factors, it is sustainable. In this aspect, the optimal step in accordance with the actual situation in the market is a little postpone production adjustments, “Shahbazov said.
According to the new decision, Azerbaijan’s obligations to reduce oil production under the OPEC + deal in April will remain at 123,000 barrels, as in the first quarter of this year. According to the Charter of Cooperation, having increased daily production by 8,000 barrels in February-March, Azerbaijan will maintain production at 595,000 barrels. The OPEC + countries will cut 6.9 million barrels in daily oil production in April.
Recall that at the 12th meeting of the ministers of the Organization of the Petroleum Exporting Countries (OPEC) in December last year, it was agreed to increase daily crude oil production in January 2021 by 0.5 million barrels, as well as gradually soften quotas to two million barrels in the coming months through monthly OPEC + ministerial meetings. As part of this, at the 13th meeting of OPEC + ministers in January 2021, it was decided to reduce daily crude oil production to 7.125 million barrels in February and 7.5 million barrels in March.