General Motors Co.'s Cruise autonomous…
Europe anticipates a significant increase…
While most analysts are wondering when Russia will reach its gradual 300,000-bpd production cut as part of the deal with OPEC to reduce global supply, another non-OPEC producer, Azerbaijan, is boasting not only full compliance, but a strong overcompliance with the cuts.
Under the deal between OPEC and 11 non-OPEC nations to cut crude oil supply by almost 1.8 million bpd between January and June, Azerbaijan has pledged to cut 35,000 bpd out of non-OPEC’s 558,000 bpd share.
Whereas the total non-OPEC compliance has been estimated at somewhere between 50 and 60 percent - mostly due to Russia’s gradual cut by the end of the first half – Azerbaijan cut its crude oil production in February to 726,400 bpd, compared to 793,000 bpd in January, the Azeri Energy Ministry said on Monday.
Before the start of the OPEC-non-OPEC deal in January, Azerbaijan was producing around 829,100 bpd of oil, according to AzerNews.
Azerbaijan’s average oil production this year is expected to stand at between 800,000 bpd and 807,000 bpd.
In the middle of February, Azerbaijan signaled it was ready to make additional production cuts to help oil prices stabilize and the glut clear out.
The country’s energy ministry said today that a letter it had received from the Joint Monitoring Committee praised the country for complying ‘214 percent’ with its share of cuts.
Related: Is A Second OPEC Cut On The Cards?
According to the committee’s letter, Azerbaijan is one of the producers playing a leading role in the cuts compliance, and without the contribution of such countries, OPEC and non-OPEC countries will fulfill the obligation less than 86 percent.
Non-OPEC compliance is at least 60 percent, according to OPEC delegates, while the combined OPEC and non-OPEC compliance rate in January was 86 percent, OPEC said on February 24, hailing “solid progress towards full conformity”.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com:
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.