Azerbaijan approves new OPEC+ oil output cut deal

OPEC+ nations have signed an agreement on daily oil production cuts by 9.7 million barrels for a term of two months, Kazakhstan’s energy ministry said.

"After the online ministerial meeting of the OPEC+ and non-OPEC+ nations, an agreement was signed on oil production cuts by 9.7 million barrels a day for a term of two months starting from May 1. Kazakhstan supported the consensus on the agreement," it said.

Azerbaijan has also supported the OPEC+ agreement.  "Today’s meeting and the resolute position of OPEC+ allowed to eliminate the obstacles and uncertainties related to the implementation of the output cut agreement. The mechanism of balancing the oil market with production interventions is supported globally and this support will contribute to the stabilization of the oil market. At the same time, this decision will encourage the countries, which do not participate in OPEC+ to cut their output," Azerbaijan’s Energy Minister Parviz Shahbazov said.

The previous OPEC+ online meeting on April 9 yielded only an agreement in principle to cut daily production by ten million barrels. The deal could not be concluded because of Mexico’s position as it said it would agree to reduce daily output only by 100,000 barrels, instead of 400,000 barrels it was supposed to do under the deal. A Group of Twenty energy ministers’ meeting on the following also failed to talks Mexico into the deal.