Global demand for oil declining

OPEC+ may consider leaving its current oil output cuts in place from Jan. 1 at its next meeting, Azerbaijani Energy Minister Parviz Shahbazov told Reuters.

Azerbaijan is a member of the OPEC+ group, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, which will meet on Dec. 1.

OPEC+, which pumps around half the world’s oil, has already delayed a plan to gradually lift production by several months this year because of falling prices, weak demand and rising production outside the group.

Three OPEC+ sources familiar with the discussions told Reuters last week that it may push back output increases again when it meets on Dec. 1 due to weak global oil demand.

Shahbazov said Azerbaijan, where oil output has declined after peaking in 2010, hopes to keep production stable until 2030.

Oil production for 2024 and 2025 is expected to be 29 million tons per year, or 580,000 bpd, Shahbazov added. Azerbaijan’s gas exports to Europe are expected to average 12.5 billion cubic metres per year in 2024 and 2025, he said. The country expects its gas production to be 50 bcm this year, of which 25 bcm will be exported, the minister said. Next year, output is expected to rise to more than 50 bcm, with exports expected to stay stable.

Earlier this year, an Azerbaijani presidential advisor told Reuters that the European Union and Ukraine had asked Azerbaijan to facilitate discussions with Russia regarding gas transit via Ukraine. Shahbazov refused to disclose the details of the consultations but was sceptical about the prospects of the talks.

To remind, the U.N. Climate Conference was held in Baku on Nov. 11-22. The aim of the conference is to reduce fossil fuel exports.