Baku, October 19, AZERTAC

“In recent days, there have been different opinions that the decision of OPEC plus to cut daily oil production by 2 million barrels since November will lead to a deficit in the oil market. I believe that OPEC plus, as always, this time adopted such a decision in order to support stability in the oil market,” said Azerbaijan’s Energy Minister Parviz Shahbazov while commenting on the Declaration of Cooperation adopted by the OPEC plus countries on 5 October 2022.

The Minister noted that currently the supply and demand balance in the oil market has been affected by numerous factors. “It's predicted that the oil demand well decrease. In such a situation, the decision to intervene with the output is inevitable. OPEC plus took such a step based on its experience in order to maintain a balance in the market. This is a decision made on the basis of consensus, not arising from the individual interest of any country. All decisions of OPEC plus are based on stability in the market. The results and achievements gained so far in complex situations are undeniable proof of this.”

The Minister of Energy also stressed that today the main threat to the balancing and stability of the market is not controlled cuts, but natural reductions in production, which are impossible to control. I think that today we must worry not about the reduction amounts announced by OPEC plus but, naturally, the trend towards a decrease in the production.

“The latest decision of OPEC plus is aimed at attracting investment flows, compensating for the expected negative mood, which is an important step in the future to prevent oil shortages and price volatility”, the Minister added.

It is reported that thanks to the OPEC plus regulatory instrument, the oil market has been provided with constant support in comparison with other energy markets. A cooperation in this format is a long-term guarantee for the sustainable balancing of the oil market.