Speaking at the meeting, Azerbaijani Minister of Energy Parviz Shahbazov noted that as a result of over-fulfillment of the countries’ obligations on quotas adopted in December last year, a sharp drop in oil prices was prevented. A price margin has also been formed, which is in the interests of both producers and consumers, he said.

“However, starting from the end of May, we once again see a downward trend in oil prices,” he noted. “Despite forecasts for an increase in global oil demand of 1.140 million barrels this year compared to last year, there is a large amount of oil supply in the market. Oil reserves in the Organization for Economic Cooperation and Development (OECD) member countries continue to grow. It is expected that supply in the global oil market will also exceed demand in the coming years. Therefore, by continuing the regulatory measures, it is necessary to extend the agreement on limiting oil production.”

In his speech, the minister also noted that in May and June Azerbaijan fulfilled its obligations to reduce daily oil production by 20,000 barrels. For 6 months of the agreement, the average daily oil production was executed at 125 percent, he said.

Azerbaijani Energy Minister Parviz Shahbazov noted that Azerbaijan supports the proposal to extend the agreement.

The proposal to extend the deadline for reducing oil production for another nine months will be discussed July 1 at the 176th meeting of the OPEC Council of Ministers. On July 2, a decision is expected to be made at the 6th meeting of the ministers of the OPEC and non-OPEC countries.

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