Azerbaijan will increase the oil production by 25 thousand barrels in total within the next three-months schedule
The decision adopted at the 15th Ministerial Meeting of OPEC Plus countries on increasing the crude oil production up to approximately 1.1 million barrels in the next three months was also supported by Azerbaijan. According to the new Declaration of Cooperation, Azerbaijan will increase the daily crude oil production by 8 thousand barrels in May, 7 thousand barrels in June and 10 thousand barrels in July, which will make up the new production commitments of Azerbaijan as 115 thousand barrels for May, 108 thousand barrels for June and 98 thousand barrels for July. Throughout the country, the crude oil production will be maintained at 603 thousand barrels in May, 610 thousand barrels in June and 620 thousand barrels in July respectively.
During his speech at the meeting the Minister of Energy Parviz Shahbazov called the confidence of global market towards the adequate and flexible decisions by OPEC Plus and the unity of the participants of Declaration of Cooperation as significant in such an unstable period. The Minister underlined the necessity of considering the well thought and careful behaviour and all the development scenarios at the adjustment meetings: "Our main purpose is to establish a balance that will serve the common benefits in the oil market. I believe that this decision of OPEC Plus will also contribute to balance the market dynamics".
It should be mentioned that the 12th Ministerial Meeting of the member and non-member states of the Organization of Petroleum Exporting Countries (OPEC), which was held in December of last year, agreed on increasing the daily crude oil production by 0.5 million barrels in January 2021 and mitigating the quotes by up to approximately 2 million barrels in the next months through the Ministerial Meetings to be held by OPEC Plus. In this regard, the production restrictions of January remained unchanged in February, March and April at the meetings held every month. According to the new agreement, the production commitments of OPEC Plus countries were set as 6.5 million barrels for May, 6.2 million barrels for June and 5.76 million for July.
It should be reminded that establishing OPEC Plus format, which is based on the coordinated activities between OPEC and non-member oil countries to stabilise the world oil market was initiated by the President of the Republic of Azerbaijan Ilham Aliyev in January 2016.
