Energy Minister Parviz Shahbazov took part in the 38th meeting of ministers of member and non-member countries of the Organization of the Petroleum Exporting Countries (OPEC), which was held online. OPEC+ countries discussed the current situation in the oil market and resolute production targets by the end of 2026 in the amount of 39.7 million barrels. Azerbaijan also supported this agreement. Azerbaijan’s current quota for crude oil production of 551 thousand barrels per day will remain stable during this period.
Also, 8 countries – Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman - agreed to maintain the voluntary commitments announced in April and November 2023. Thus, an additional voluntary reduction commitment of 1.65 million barrels per day, announced by 8 countries in April 2023, will remain in force until the end of December 2026, and an additional voluntary reduction commitment of 2.2 million barrels per day, announced in November 2023 – until the end of March 2025. The 2.2 million barrels of cuts across these countries will be phased out monthly until the end of September 2026.
At the meeting, an agreement was also reached to extend the period for assessing production of the participating countries by three self-reliant sources until the beginning of November 2026, as well as to extend the period for payment of compensation until the end of June of the same year.
energy Minister Parviz Shahbazov spoke about the crucial role of the regulatory mechanism in the OPEC + format in maintaining stability in the global oil market, in particular, the contribution of this cooperation chaired by the Minister of Energy of the Kingdom of saudi Arabia, Prince Abdul Aziz bin Salman Al-Saud. Other countries of the “Declaration of Cooperation” also joined this initiative, and this point is reflected in the final document of the meeting.
The 39th meeting of ministers of member and non-member countries of the Organization of the Petroleum Exporting Countries (OPEC) is scheduled for May 28, 2025.
What are the potential impacts of OPEC+ production cuts on global oil prices?
Interview with Energy Expert On Recent OPEC+ Developments
Editor: Welcome to Time.news! Today we have the pleasure of speaking with Dr.Elena Markova, a leading expert in energy economics and oil market analysis.Dr. Markova, thank you for joining us.
Dr.Markova: Thank you for having me! I’m excited to discuss the latest developments from OPEC+ and their implications for the global oil market.
Editor: Let’s dive right in. The recent OPEC+ meeting, where Energy Minister Parviz Shahbazov represented Azerbaijan, concluded with significant agreements on production targets. What are your thoughts on the stabilization of Azerbaijan’s oil production quota at 551,000 barrels per day?
Dr.Markova: Azerbaijan maintaining its production quota is a strategic decision that reflects both cooperation and stability within OPEC+. With the global oil market facing various challenges,this stability is vital not only for Azerbaijan’s economy but also for the overall balance in oil supply.
Editor: The meeting also highlighted a collective commitment from eight countries, including Saudi Arabia and Russia, to maintain significant voluntary production cuts. What does this mean for oil prices going forward?
Dr.Markova: These voluntary cuts of up to 1.65 million barrels per day,which will extend to the end of December 2026,are designed to reduce oversupply and support prices. While the immediate effect may stabilize market volatility, we might expect a gradual increase in prices provided that demand holds steady. This is particularly crucial given recent fluctuations in the market.
Editor: Minister Shahbazov emphasized the role of the regulatory mechanism within the OPEC+ framework. How crucial is this for global oil market stability?
Dr. markova: The regulatory mechanisms established by OPEC+ serve as a vital tool for managing production levels among member and non-member countries. This coordinated approach helps mitigate the impacts of external shocks and maintains a level of predictability for investors and markets alike. Effective regulation can lead to sustained stability, which is essential as we navigate uncertain global economic conditions.
Editor: The meeting agenda included extending the assessment period for production until November 2026. Why is this significant for the member countries?
Dr. Markova: Extending the assessment period allows for a more extended strategic outlook on production levels, giving member countries time to adapt to changing market conditions.This foresight is crucial for maintaining production alignment and ensuring that countries are not adversely affected by sudden shifts in demand or regulatory changes.
Editor: With the next OPEC+ meeting scheduled for May 28, 2025, what advice would you give to industry stakeholders in preparation for this event?
Dr. Markova: Stakeholders should monitor market trends closely,particularly related to global demand and geopolitical developments that could affect supply. Additionally, they should engage in scenario planning to understand potential outcomes based on varying production commitments. Networking with industry peers and staying informed through credible sources will also be advantageous as the meeting approaches.
Editor: Thank you, Dr. markova, for your insights into the OPEC+ developments and their implications for the oil market. Any final thoughts for our readers?
Dr. Markova: It’s essential for everyone involved in the energy sector to remain agile and well-informed. The oil market is ever-evolving, and understanding these dynamics will be key to navigating future challenges and opportunities.
Editor: Thank you again for your time and expertise! This interview will undoubtedly provide valuable insights for our readers who are keen on understanding the implications of recent OPEC+ agreements.
Dr. Markova: Thank you for the opportunity to discuss these critical topics!