Azernews.Az

By Leman Mammadova

OPEC did not change the forecast for average daily oil production in Azerbaijan at the end of 2018, keeping it at the level of 800,000 barrels per day, according to the cartel's December report.

The daily oil production in the country is expected to decrease by 20,000 barrels to 780,000 barrels in 2019 complied with the commitment undertaken by Azerbaijan within the framework of OPEC+ agreement.

In the previous report, the organization reduced the forecast for daily production for the next year by 10,000 barrels, to 790,000 barrels.

Recently, OPEC revealed its forecast for 2018 on the increase in oil supply from non-cartel countries by 190,000 barrels per day compared to last month - up to 2.5 million barrels per day.

Azerbaijan undertook to reduce its production by 35,000 barrels per day within the framework of the Declaration of Cooperation signed in Vienna on Dec. 10, 2016.

Azerbaijan presented data on its daily oil production in November 2018 to the OPEC Joint Technical Committee as part of the Vienna Agreement. Daily oil production stood at 801,000 barrels in November 2018, of which 733,000 barrels accounted for crude oil and 68,000 barrels for condensate, while 6,000 barrels of oil products were exported.

Major oil producers have reached a deal to reduce oil production by 1.2 million barrels per day at the fifth meeting of OPEC and non-OPEC ministers held in Vienna on December 7.

It has been agreed to reduce daily oil production by 800,000 barrels per day for OPEC countries in the first six months of 2019. Non-OPEC countries have agreed to reduce oil production by 400,000 barrels a day.

The agreement will enter into force on January 1, 2019. The next meeting of OPEC and non-OPEC format will be held in Vienna in April next year to revise the agreement.

OPEC and non-OPEC producers reached an agreement in December 2016 to curtail oil output jointly and ease a global glut after more than two years of low prices. OPEC agreed to slash the output by 1.2 million barrels per day from January 1.

Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce output by 558,000 barrels per day starting from January 1, 2017.

OPEC and its partners decided to extend its production cuts till the end of 2018 in Vienna on November 30, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.

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