Azerbaijan ready to further reduce oil output

By Azernews

By Nigar Abbasova

Azerbaijan, one of non-OPEC producers pledging to support the oil prices, announced readiness for additional output cuts to stabilize the situation and oust the problem of glut.

Zamina Aliyeva, the spokesperson for the Energy Ministry told Trend that Azerbaijan is ready to further reduce oil production should such a decision is made by the OPEC and non-cartel producers. 

In late 2016, OPEC members decided to implement a new production target of 32.5 million barrels per day. Later, non-OPEC countries agreed to cut the output by 558,000 barrels per day.

Azerbaijan has completely fulfilled its obligations to reduce the volume of oil output by 35,000 barrels per day since January 1, 2017.

The volume of daily production in January amounted to some 793,900 barrels, with some 50,800 barrels falling to a share of condensate. The volume of export stood at 617,000 barrels of oil per day with some 50,800 barrels accounting for condensate and 24,200 barrels falling to a share of petrochemical production.

Prior to the landmark deal, the volume of production in the country was at the level of 829,100 barrels daily.

Oil production of the country in 2017 is forecasted to stand at 39.797 million, while average daily oil production will amount to 800,000-807,000 barrels

Aliyeva recalled that in March 2017, Kuwait will host a ministerial meeting of OPEC High-level Monitoring Committee, where the participants will discuss the implementation of the agreement and its impact on the market.

Earlier, Kuwaiti Oil Minister Essam Abdul Mohsen Al-Marzouq said that in February 2017, OPEC and four non-cartel states will discuss the further reduction of oil production. Compliance of producers to reduction quotas is deemed to be the primary tool to return the balance back to the market.

The compliance of OPEC members is estimated at the range of 80 to 90 percent, while non-group producers delivered more than half of their pledged production reductions.

Meanwhile, oil prices were stable on February 13, mainly supported by the signs that OPEC-led production cuts were reducing global overproduction.  Brent crude futures were trading at $56.72 per barrel, 2 cents up from their previous close, while West Texas Intermediate (WTI) crude futures were 2 cents down at $53.84 a barrel.