Azerbaijan agrees to continue existing oil production cuts in April
Azerbaijan supported the agreement reached at the 14th Ministerial Meeting of OPEC Plus on the continuation of existing quotas on daily crude oil production in April, said the country's Energy Ministry.
Azerbaijan stressed the importance of the activities of oil producers on the basis of consensus within the Declaration of Cooperation in order to maintain positive dynamics in the oil market under the conditions of uncertainties arising from the pandemic.
Azerbaijani Energy Minister Parviz Shahbazov stressed that the oil market is relatively balanced compared to previous periods, but the risks are still not eliminated, noting that a cautious approach to the regulatory process maintains its urgency: "The current price increase is conditioned by a global conjuncture rather than demand for oil. An increase in the oil prices becomes more sustainable when it's connected with the demand and based on the fundamental factors. In this regard, the optimal step in line with the real situation in the market is to postpone production adjustments."
According to the new agreement, Azerbaijan's commitment of 123,000 barrels in April this year will remain unchanged as the first quarter of the current year. The daily crude oil production will be kept at the level of 595 barrels. In April, the daily crude oil production cuts of OPEC plus countries will make up 6.9 million barrels.
It should be reminded that at the 12th Ministerial Meetings of Organization of Petroleum Exporting Countries (OPEC) and non-OPEC countries, it was agreed to increase the daily crude oil production by 0.5 million barrels in January 2021 and gradually mitigate the quotas up to 2 million barrels in the next months through the Ministerial Meetings of OPEC plus to be held in every month. At the 13th Ministerial Meeting of the OPEC plus countries, it was decided to reduce the daily crude oil production of OPEC plus countries by 7 million and 125,000 barrels in February and by 7 million and 50,000 barrels in March.