Baku will support the extension of the agreement on the reduction of oil production

Energy Minister Natig Aliyev noted that the current agreement had a positive impact on the market 25.Apr.17 5:38 AM By Christina Orlina Photo Toinnov.com    365

Azerbaijan considers expedient to extend the agreement to reduce oil production to maintain stable prices in the market. "I believe that if we want to maintain stable oil prices on the market, the agreement on production cuts must be extended," - said the head of Ministry. According to him, the current agreement had a positive impact on the market, and currently the price of oil stabilized in the range of $50-60 per barrel. "The meeting of the monitoring Committee of OPEC will be held on 24 May, based on the report which then will decide about prolongation of the contract on reduction of oil production in OPEC and outside of OPEC, or any other decision in this regard", - said Aliyev. He added that the decision on the extension of the agreement on oil "would be in favor of Azerbaijan". "We argue (against the extension of the agreement) will not" - said the Azerbaijani Minister. The second OPEC summit was hosted at the end of November 2016 in Vienna, which resulted in the first since 2008, a formal decision of the cartel to cut oil production to a level of 32.5 million barrels per day. In early December of last year this agreement was joined by 11 countries outside the cartel: Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, the Republic of the Sudan and South Sudan. Given these countries the total reduction in the first half of 2017 will be 1.7-1.8 million barrels a day. According to the agreement, Azerbaijan undertook to cut its own oil production by 35 thousand barrels per day and adheres to commitments made.

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