Azerbaijan to join meeting of OPEC and non-OPEC countries
  • ECONOMY

  • 14:17 04 April 2020

Azerbaijan to join meeting of OPEC and non-OPEC countries

Azerbaijan is ready to take part in Ministerial meeting of OPEC and non-OPEC countries, aimed at stabilization of oil market, and planned to be held in the form of video-conference, and contribute to global regulation process of oil market, Energy Ministry of Azerbaijan told ONA.

World's oil market has faced with sharp decrease in global demand to oil, regarding weakness of economic activity in the world market and difficulties appeared as a result of increase in oil reserves.

It was stated that currently the world oil market has faced difficulties arising from sharp decrease of global demand for oil and growth of oil reserves due to slowdown of economic activeness.

“Thus, the daily rate of reduction of global demand for oil is evaluated approximately at the level of about 10-15 million barrels. It is forecasted that within a month, the daily oil demand will drop to 20 million barrels, and the oil depots will be completely filled in the upcoming months due to procurement surplus. In such a situation, the resumption of discussions in “OPEC plus” format and the return to the regulation mechanism represent great significance for the world oil market. We think that the solidarity and cooperation of the oil producers is the only solution in the situation when the oil market is not supported by economic factors.

Currently, we are at the beginning of the new phase in the process of regulation of the oil market. The current problems exert negative influence not only on the “OPEC plus” countries but also on the countries being beyond this format. Therefore, we think that the non-OPEC plus countries should also joint this process in order to eventually create balance on the oil market. If the cooperation of OPEC and other non-OPEC countries in the wide format is established, then a new regulation model will be formed for the first time in the history and more efficient and fair regulation mechanism may emerge on the oil market. Consequently, the balance and price stability can be achieved on the oil market.  

We hope OPEC+ countries will take steps, which makes the rare opportunity a decision. Azerbaijan is also ready to support process of regulation of oil market from now as a country, played an important role in establishment of OPEC+ format and execution of decisions so far, and take new obligations. At the same time, Azerbaijan calls on all oil countries to demonstrate the same position and jointly support oil market at the forthcoming meeting", noted in the information.

Emil Ismayilov

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