Azerbaijan accedes to a decision on 9-month oil-cuts extension


July 2, Fineko/abc.az. Azerbaijan signed the Declaration on Cooperation and the Charter for long-term cooperation in connection with oil production cuts by another 9 months.

A Charter for long-term cooperation between OPEC and non-OPEC member countries was adopted at the 6th OPEC+ Ministerial Meeting in Vienna.

Then it was agreed to extend by another 9 months the agreement on oil production cuts. Azerbaijan also joined the decision of the Cooperation Charter, as well as OPEC and non-OPEC member countries to be valid until the end of the 1st quarter of 2020.

Azerbaijani Energy Minister Parviz Shahbazov, who participated in the event, assessed the current meeting of OPEC and non-OPEC ministers as a historic event within the framework of OPEC+ cooperation: “Thanks to the Cooperation Charter between OPEC and non-OPEC member countries, we will already organize our efforts to balance the oil market. The Charter, as a mechanism for long-term cooperation, will protect the interests of oil producers and provide sustainable support to the oil industry.”

At the meeting, the ministers of non-OPEC members also agreed to the OPEC’s proposal with taking into account economic and geopolitical factors related to daily production, the pace of development of the world economy, the dynamics of supply and demand. The production cuts agreement is considered acceptable for an extension with full coverage of the winter season. Following the discussions, the OPEC member countries and non-member countries, including Azerbaijan, signed the Cooperation Declaration.

Minister Shahbazov also commented on the decision of the OPEC+ countries for regulation of the oil market and maintainance of stability in the coming months: "This is an important decision to balance the market in a period of ongoing economic and geopolitical uncertainty. The OPEC+ countries have once again demonstrated solidarity against risks. Azerbaijan's entry into this process, the signing of the Cooperation Declaration fully meets the interests of our country,” the minister added.

The implementation of the Cooperation Declaration is planned from 1 July 2019 to 31 March 2020. The quotas of the OPEC+ countries on the Cooperation Declaration adopted last December remain unchanged.