Azerbaijan to boost daily crude oil output in August within OPEC+

By Azernews

By Ayya Lmahamad

Azerbaijan will boost its daily crude oil output by 11,000 barrels in August 2022, the country’s Energy Minister Parviz Shahbazov has said.

He noted that crude oil production in OPEC+ countries will be increased by 648,000 barrels.

“In August, large-scale commitments under the #HistoricAgreement of more than two years ends with an increase in daily crude oil output in #OPECPlus countries by 648,000 barrels, including 11,000 barrels in #Azerbaijan. #OPECPlus has successfully fulfilled its historic mission of stabilizing the global oil market through a #BalancedApproach, #FlexibleRegulation, and #HighSolidarity,” he wrote on his official Twitter page.

The decision to increase daily crude oil production in August, which Azerbaijan supported, was reached at the 30th ministerial meeting of the OPEC and non-OPEC countries. These are the final cuts in daily crude oil production for OPEC+ countries as part of the phased implementation of the historic April 2020 agreement to rebalance supply and demand in a recessionary oil market. During this period, OPEC+ gradually imposed production limits, constantly adjusting the decisions made at regular meetings. According to the new decision, the countries participating in the “Declaration of Cooperation” should produce 43,854 barrels of crude oil per day in August. This allows production to be restored to the level of October 2018, when the cuts were made.

To recall, since April 2020, OPEC and non-OPEC countries have entered into an agreement on the reduction of daily oil production volume. From May 2022 to the end of the year, the calculation of Azerbaijan's oil production obligations will be continued on the basis of the existing base. In other words, 718,000-barrel daily crude oil production in October 2018 in Azerbaijan will remain at the base level for determining the output level next year.