Azernews.Az

By Nigar Abbasova

Azerbaijan, the oldest known oil producing country in the world, is interested in closer contacts with OPEC, the cartel representing 14 major oil producing nations.

Energy Minister Natig Aliyev said that bolstering ties between Azerbaijan and OPEC through dialogue and consultations will pave the way for “reaching an advantageous agreement on the possible output reduction”.

In his article published on the official press, the minister said that any decision of the cartel, whether it would be a freeze or cut of oil production, will have a “stimulating influence” on uplift in prices.

Members of the OPEC will meet next week on November 30 in Vienna to decide on the details of an agreement to cut output that the group has been trying to hammer out since September.

Doubts remain over whether the cartel will agree to a proposed cut of 4 percent to 4.5 percent that has been discussed. That would imply a supply cut of more than 1.2 million barrels per day, according to Reuters calculations.

In the U.S. market, West Texas Intermediate (WTI) crude oil futures CLc1 settled down 7 cents, or 0.2 percent, at $47.96 a barrel. Brent crude futures LCOc1 settled down 17 cents, or 0.35 percent at $48.95 a barrel.

Aliyev further mentioned that bearing a commitment of the control over the black gold market and distribution of responsibilities among the producer states will serve as a message of possible tougher measures in relation to those, interested in speculations.

“Given the fact that the economic factors providing high oil prices are weak, there is a necessity of intervention into the market. Taking into consideration GDP indices of countries in 2016 and 2017, we may observe a slump in economic growth in China, India, and Eurozone. GDP is expected to drop down from the current level of 6.5 to 6.1 percent in 2017, while India is projected to record a decrease from 7.5 to 7.2 percent. Economic growth rates in Eurozone are expected to drop from 1.5 to 1.2 percent.”

The minister also mentioned that OPEC Secretary General Mohammed Sanusi Barkindo has expressed an intention to pay an official visit to Azerbaijan.

“The visit will provide a solid basis for the development of cooperation with the group and will increase a prestige of the country among oil producing states. In this regard, with the consent of the president, the Energy Ministry has already sent an invitation to Mohammed Barkindo.”

OPEC Secretary General and Azerbaijani Energy Minister earlier met in Vienna prior to the OPEC–non-OPEC first meeting of the High-level Committee. Azerbaijan has already demonstrated its intention contribute to the stabilization of the oil market unilaterally declaring that it will not increase the production and export of its oil.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

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