Caspian Energy Journal Caspian European Club
Friday, 22 June 2018 11:30

OPEC and non-OPEC countries to raise oil output Featured

OPEC and non-OPEC countries to raise oil output

“Cooperation in the OPEC + format has reached the goal to stabilize oil prices, but the new situation in the global oil market and in the oil industry has determined new priorities for this cooperation. The pace of the economic growth in the world, the development of the petrochemical sector along with impossibility of a complete replacement of oil with renewable energy sources will secure a leading position of oil in the energy balance in the short term”, Minister of Energy Azerbaijan Parviz Shahbazov said at the 9th meeting of the OPEC/Non-OPEC Joint Ministerial Monitoring Committee, Caspian Energy News ( reports with reference to the statement of the Ministry of Energy of the Republic of Azerbaijan.

“The overall level of implementation of the agreement reached between OPEC and non-OPEC states totaled 147% in May. Since the beginning of 2017 the OPEC+ participants have managed to reduce the surplus of oil reserves by 380mln barrels. The market sees the success of our joint efforts made for reduction of reserves and reacts positively”, Minister of Energy of Russia Alexander Novak said at the meeting, Caspian Energy News ( reports with reference to the Ministry of Energy of Russia.

“There are signs of confident market balancing. However, it is important to prevent the “overheating” associated with possible oil deficiency”, the Minister of Energy noted.

According to the results of the enlarged monitoring committee, the majority of its participants recommended to consider increase of production by 1 mln barrels per day (from the current level) at the upcoming ministerial meeting of OPEC and the following ministerial meeting to be held with participation of non-OPEC states, and distribute this volume between the agreement participants.

It is noteworthy that, during the visit of Mohammad Barkindo to Baku, he noted that “investments for 2018 are increasing, but nevertheless we do not see a sufficiently tough investment policy in the long term. The forecasts say that $10.5 trillion is expected to be invested into the oil industry till 2040, thereby ensuring its growth in the long term”.  

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Person in charge of the newsline: Fidan Isayeva


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