Azerbaijani oil sector to likely remain on gradual recovery path well into 2022, Fitch says 

Oil prices will average USD 70.0/bbl in 2021 and USD 67.0/bbl in 2022 compared to USD 43.0/bbl in 2020, Report informs, referring to Fitch Solutions.

The Azerbaijan oil and gas sector will likely remain on a gradual recovery path well into 2022.

Azerbaijan’s oil and gas sector suffered considerably due to the collapse in oil prices in 2020 that was brought on by the pandemic. Oil prices fell by an average of 33.0% in 2020, and this coincided with Azerbaijan’s daily crude oil production falling to below 650bbl/d for the first time in the history of the series.

Production cuts agreed upon by the Organization of the Petroleum Exporting Countries (OPEC) had partly to do with the fall in output from Azerbaijan.

Indeed, since a gradual easing of these restrictions at the end of 2020, Azerbaijan’s own oil output has gradually risen to 669.9bbl/d in May 2021.