In January the OPEC agreement passes the test

In January the OPEC agreement passes the test

Elisa Maria Giannetto
Share
Baku presents its first monthly report on its cuts in oil production. In the first month of the year, 35,000 less barrels a day were produced. A positive sign for the holding of the OPEC agreement

After Russia, another major non-OPEC oil-producing country appears to be heading along the right track to calm the markets and bring faith as to a future rebalance of supply and demand. Indeed, in January Azerbaijan submitted a positive report on its cutbacks in oil output, bearing witness to a reduction of 35,000 bpd. The figures, illustrated by a representative of the Ministry of Energy of Baku to the technical commission of the Committee tasked with auditing the maintaining of the OPEC agreement, highlighted that ''up to 10 December 2016, the date the agreement was stipulated, the country had produced 37,72 million tons of oil in 11 months, with a daily production level of 829.100 barrels. ''In January – as one can glean from the report - this share fell to 794.100 barrels per day. Baku thus proves it is living up to the commitments made during the Vienna conference, which brought together the main oil-producing powers under the OPEC cartel, together with another eleven nations, including Russia, Mexico and namely Azerbaijan. But the impact of these choices on the markets and on the stabilization of oil prices can only be assessed in a longer time span. To do just this, a meeting of the monitoring committee has been fixed for March, in Kuwait, with the aim of making a first assessment of price fluctuations and to indicate to the signatories any corrective actions that may need to be taken. If the commitments made in the Austrian capital were to be fulfilled, according to the forecasts of some industry analysts this year the world supply of oil could be down 2%. However, doubts as to the will to respect proclaimed intentions still linger and we will have to wait a little longer to see who is really willing to pass from words to actions in the medium term.