Azerbaijan supports OPEC+ decision on daily oil production cut

By Azernews

By Ayya Lmahamad

Azerbaijan has supported the decision of OPEC plus to cut daily crude oil output by 2m barrels from November 2022, taken during the 33rd Ministerial Meeting of OPEC and non-OPEC members in Vienna, Azernews reports.

The new commitments of the participating countries of the Declaration of Cooperation were determined based on their quotas in August 2022. The term of the agreement was extended until December 31, 2023.

Based on the new decision, Azerbaijan's commitment is to cut 33,000 barrels daily. Thus, the OPEC plus agreement envisages that starting from November 2022, the daily crude oil production in Azerbaijan will be reduced from the level of August, i.e. 717,000 barrels, and be maintained at 684,000 barrels.

"At the meeting of #OPECplus held in Vienna after a long time, we made a new decision based on consensus. The need to reduce volatility and ensure stability in the #oil market keeps the regulatory process relevant," Parviz Shahbazov tweeted.

The next meeting of OPEC plus is scheduled for December 4, 2022.

Since April 2020, OPEC and non-OPEC countries have entered into an agreement on the reduction of daily oil output volumes.

At the 19th Ministerial Meeting of OPEC and non-OPEC countries, Azerbaijan supported the decision to increase daily crude oil output by 400,000 barrels per month in August-December 2021 and to extend the Declaration of Cooperation until late 2022, with partial adjustments to the base level of oil production from May 2022.

From May 2022 till the end of the year, the calculation of Azerbaijan's oil production obligations is to be continued on the basis of the existing level.