Azerbaijan cuts oil output in January under OPEC agreement, willing to cut further

Azerbaijan has cut oil production to 789,000 barrels of oil per day from January 1-20, 2017 in the framework of the country's deal with OPEC, Azerbaijani Energy Minister Natig Aliyev said in an interview for the National Gas Europe publication.


"Azerbaijan is completely fulfilling its commitments under the agreement with OPEC to cut oil production. From January 1, 2017 the country cut daily production by 35,000 barrels and in the period from January 1-20 Azerbaijan produced 789,000 barrels of oil per day," Aliyev said.


"The price for oil in January 2017 rose by $25 per barrel in comparison with January of 2016, and this benefits all oil producers. Azerbaijan may still reduce oil production even more, if other oil producers decide to cut production volumes to maintain prices," Aliyev said.


It was reported earlier that on December 10, 2016 there was a ministerial meeting of OPEC and non-OPEC countries. After the meeting, the countries signed an agreement on the agreed upon reduction of volumes of oil production. The drop in production for OPEC countries will amount to about 1.2 million barrels a day, which corresponds with a production level of 32.5 million barrels a day. Countries not belonging to OPEC will reduce oil production by 558,000 barrels a day.


Per the agreement, Azerbaijan will reduce its own oil production by 35,000 barrels a day.

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