NUR-SULTAN/BAKU – Kazakhstan and Azerbaijan do not plan for now increases in oil production after the failure of Friday’s meeting between OPEC members and non-OPEC producers (OPEC+) to introduce additional production cuts to tackle the coronavirus crisis.
“There are plans for 2020. We will follow these plans. There are no plans to increase or reduce” production, Kazakh Energy Minister Nurlan Nogayev said at a press conference after a government meeting on Tuesday.
Nogayev said that crude oil production for 2020 is planned to be approximately 90 million tons.
If additional cuts of 1.5 million barrels per day of crude oil had been agreed, Kazakhstan would have been called on to cut production by 20,000 to 30,000 barrels per day, according to a technical committee proposal that was presented in Vienna.
The current OPEC+ agreement between the Organization of Petroleum Exporting Countries and 10 non-OPEC oil-producing states formed in 2016 expires on March 31.
The Kazakh minister said there would be a technical meeting on March 18, but an extension or suspension of the agreement would not be considered.
Nogayev said the OPEC+ agreement has proven its effectiveness.
Azerbaijan is currently monitoring the situation in the oil market, but has not made any decision to increase production, Azerbaijan Energy Ministry advisor Zamina Aliyava has said.
“At this time, we are not taking any individual action. The issue of increased oil production in the country after the OPEC+ agreement to limit oil production ends remains open. We will see how events develop before April 1,” she said.
The price of a barrel of Brent crude for delivery in May recovered on Tuesday at the London futures exchange by 7.19%, up to $36.85, after crashing the previous day by more than 24%, affected by the price war started by Saudi Arabia.