According to the new ‘Declaration of Cooperation’, daily crude oil production in Azerbaijan will increase by 8,000 barrels in May, 7,000 barrels in June, and 10,000 barrels in July.
“Thus, Azerbaijan's new production commitments will amount to 115,000 barrels in May, 108,000 barrels in June, and 98,000 barrels in July. Daily oil production in the country will remain at 603,000 barrels in May, 610,000 barrels in June and 620,000 barrels in July,” the ministry said.
Energy Minister Parviz Shahbazov, speaking at the meeting, considered the confident acceptance of adequate and quick decisions by OPEC+ by the global oil market, as well as solidarity among the participants in the ‘Declaration of Cooperation’ as important moments in an unstable period.
The minister stressed the importance of thoughtful, careful behavior in regulatory measures and taking into account all development scenarios.
“Our main goal is to achieve a balance in the oil market that serves the common good. I believe that the current OPEC+ decision will also contribute to efforts to balance market dynamics,” said Shahbazov.
At the 12th meeting of the ministers of the Organization of the Petroleum Exporting Countries (OPEC) in December 2020, it was agreed to increase daily crude oil production in January 2021 by 0.5 million barrels, as well as a gradual softening of the quota to 2 million barrels in the coming months through monthly OPEC+ ministerial meetings. Due to this, at monthly meetings held from January 2021, production restrictions for January were left stable in February, March and April. Under the new agreement, production commitments for OPEC+ countries will amount to 6.5 million barrels in May, 6.2 million barrels in June, and 5.76 million barrels in July.
In order to stabilize the global oil market in January 2016, President of Azerbaijan Ilham Aliyev put forward an initiative to create an OPEC+ format to coordinate actions between OPEC and oil countries that are not part of the organization.