Decision on reducing production - important step for development of oil industry - Parviz Shahbazov

Fri 07 Dec 2018 19:50 GMT | 23:50 Local Time

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The decision to reduce oil production, taken at the end of the OPEC+ meeting, is an important step for the development of the oil market and the oil industry, said Parviz Shahbazov, Minister of Energy of the Republic of Azerbaijan, commenting on the decision of the cartel.

The Minister highly appreciated this decision. “Recently, under the influence of political and economic factors, the price of oil has fallen, the process has acquired a long-term character. The predominance of production over consumption, forecasting a decline in the global economy for the following year ensured a fall in prices. The only support to the oil market could be provided only by OPEC + countries. Today’s decision was a very important step for oil producers, the oil market and the future of the oil industry,” the minister said.

The alliance will take 1.2 million barrels per day off the market for the first six months of 2019. The 15-member OPEC cartel has agreed to reduce its output by 800,000 bpd, while Russia and the allied producers will contribute a 400,000 bpd reduction.

According to the Ministry of Energy of Azerbaijan, in order to support the process of regulating the oil market, the country supported the decision to reduce production. Azerbaijan has pledged to cut production by 20,000 barrels per day. Thus, if the daily oil production in October was 783,000 barrels, from next year Azerbaijan will maintain this figure at 763,000.




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