Azerbaijan one of the most disciplined participants in OPEC + deal: Expert

"Russia and Azerbaijan have become one of the most disciplined parties to the OPEC + deal."

Deputy Director of International Energy Policy and Diplomacy Institute of Moscow State Institute of International Relations Igbal Guliyev told the Russian bureau of Report.

"As we know, on June 6, OPEC + participants agreed to maintain a record level of decrease in oil production until the end of July. Despite unprecedented restrictions, Russia and Saudi Arabia insisted on 100% compliance with all the parties to the agreement. In this regard, special attention is paid to Nigeria and Iraq, which did not fulfill their obligations at the end of May. Angola and Kazakhstan did not reach the required production level. These countries are obliged to compensate for the missing production cuts until September inclusive. In general, OPEC + private owners fulfilled the agreement in May by roughly 90%. In May, Russia achieved its obligations in full, reducing production by almost 20%, to 8.5 million BPD. During the OPEC + meeting, Azerbaijan's role in regulating the oil market was also highly appreciated. The next large meeting of OPEC + is scheduled for November 30 - December 1, but the joint monitoring committee of energy ministers will gather every month starting June 18. Implementation standards will be treated with special attention, "he said.

According to I. Guliyev, the decline in production at a record pace should lead to a balance in the oil market:

"According to the expectations of the Ministry of Energy of the Russian Federation, in June, the world market will be balanced by supply and demand, and in July, an oil shortage of 3-5 million BPD is possible. The decline in world demand in April reached 25-28 million BPD, but in May, the excess supply of oil decreased by 21 million BPD.

When we reach a balance and whether a shortage in the oil market will depend on the real volume of reduction by OPEC + participants. Tanker storage of oil, which is currently very high, should also be considered."