The Organization of Petroleum Exporting Countries (OPEC) is seeking to enhance its global influence at the present time by including major new players in the global oil market.
The Kingdom of Saudi Arabia, the largest oil producer in OPEC, has always stressed that the organization aims primarily to achieve stability in global prices and ensure energy security, in light of the turmoil in the energy markets.
In this context, the Secretary-General of the Organization of Petroleum Exporting Countries “OPEC” Haitham Al-Ghais called today, Wednesday, July 5 (2023), Azerbaijan to join it and obtain its membership, but Azerbaijan replied that it is not currently considering joining the organization, according to Reuters reported, citing the Russian news agency Interfax.
Al-Ghais refused to comment on Azerbaijan’s response regarding the offer submitted to it by “OPEC”, according to what was seen by the specialized energy platform.
Meeting in Vienna
Today, Wednesday, July 5 (2023), Azerbaijani Energy Minister Parviz Shahbazov met with Al-Ghais in the Austrian capital, Vienna, according to Trend.
The talks between Shahbazov and Al-Ghais focused on the necessary steps to achieve balance in the global oil markets, and issues related to the development of its industry.
The talks between the officials also touched on ways to achieve energy security in the future, and the need to create a climate of positive dialogue and fruitful cooperation that includes all concerned parties.
Azerbaijani Energy Minister Parviz Shahbazov is currently attending the eighth international symposium of the Organization of Petroleum Exporting Countries “OPEC” in Vienna.
Azerbaijani oil production
Oil production in Azerbaijan touched 612 thousand barrels per day, according to the latest estimates issued by the Ministry of Energy in May (2023).
Under the OPEC + decision, Azerbaijan is committed to reducing its daily oil production by 33,000 barrels.
Baku’s share of oil is expected to reach 684,000 barrels by the end of this year (2023).
Oil prices in Azerbaijan
The price of Azerbaijani oil in the global market increased by $0.41, or the equivalent of 0.52%, to $79.59 per barrel during trading today, Wednesday, July 5 (2023), according to News.AZ. .
The price of Brent crude, the international benchmark, was trading at $75.79 per barrel.
The average oil price in Azerbaijan’s government budget for 2023 is $60 per barrel.
It is noteworthy that the lowest price was monitored for the trading of Azeri crude Lite (Azeri Light) – a type of light, sweet crude oil – was recorded on April 21 (2020), and at that time it reached $ 15.81, while the highest price ever reached by the same crude was $ 149.66, and that was in July (2008) .
The following infographic – prepared by the specialized energy platform – shows 9 OPEC + countries voluntarily reducing oil production:
Export earnings
Revenues from Azerbaijani oil and gas exports during the first 11 months of last year (2022) amounted to $33.6 billion, equivalent to 92.6% of the total revenues of the Asian country.
These revenues were supported by high oil prices as a result of the Russian-Ukrainian war, but risks remain due to relying on a single pipeline located in a Turkish region that is constantly exposed to seismic activities.
Azerbaijan’s oil supplies are also declining as the oil fields in the Caspian Sea reach maturity and therefore require good management to increase production.
Despite its continued support for the OPEC + policies of which it is a part, Azerbaijan did not join the voluntary cuts in production, and is still producing less than its share.
Saudi Arabia, the largest producer in the OPEC+ alliance, has proposed extending the latest cut by 1 million barrels per day beyond July (2023).
Azerbaijan’s production reached 500,000 barrels per day in May (2023), according to the latest Platts survey conducted by S&P Global Commodity Insights.
And the OPEC + alliance had set Azerbaijan’s share at 684 thousand barrels per day during the period from November (2022) to December (2023).
The recent drop in oil prices has led some members of the OPEC+ alliance to extend voluntary production cuts until the end of 2024.
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