Azerbaijan supports OPEC+ decision to remain August quotas in October

By Azernews

By Ayya Lmahamad

At the 32nd Ministerial Meeting of OPEC and non-OPEC countries, Azerbaijan supported the decision to maintain the August quotas in October, which is 100,000 barrels less than the level of September 2022, Azernews reports per the Energy Ministry.

The new decision envisages 717,000 barrels of daily crude oil production in Azerbaijan in October.

"#OPECplus countries decided to implement August deal parameters in October in order to reduce high volatility and low liquidity in the oil market. The daily quota for #Azerbaijan is 717 thousand barrels," Energy Minister Parviz Shahbazov wrote on his official Twitter page.

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.

The Declaration of Cooperation envisaged increasing daily crude oil production volume in Azerbaijan every month from August to the end of 2021 and reducing the obligations related to cuts accordingly.

Moreover, from May 2022 till the end of the year, the calculation of Azerbaijan's oil production obligations will be continued on the basis of the existing level. In other words, the 718,000-barrel daily crude oil production set in October 2018 for Azerbaijan will remain the base level for determining the output level next year.