EIA lowers forecast for Azerbaijan's oil production

Baku, May 14 - Neftegaz.RU. The U.S. Energy Information Administration has lowered its forecast for Azerbaijan's 2020 oil production by 40,000 barrels to 710,000 barrels..

According to the EIA's Short-Term Energy Outlook report released on May 12, oil production in Azerbaijan is projected at 780,000 bpd in the 1st quarter of 2020, 660,000 bpd in the 2nd quarter, 660,000 bpd in the 3rd quarter and 710,000 bpd in the 4th quarter.

At the same time, the agency increased forecast on oil production in Azerbaijan in 2021 by 10,000 bpd compared to April, up to 740,000 bpd. According to the EIA forecasts, oil production in Azerbaijan will amount to 740,000 bpd in the 1st quarter of 2021.

The EIA notes that in 2019 oil production in Azerbaijan amounted to 790,000 bpd. Furthermore, EIA has increased its forecast for the average price of Brent oil for 2020 to $34.13 per barrel from the previous $33.04, and for 2021 has raised its forecast to $47.81 per barrel from $45.62 per barrel.

In addition, EIA's forecast for the average price of WTI oil for 2020 has been raised to $30.1 per barrel against the April estimate of $29.34, and for 2021 has been increased to $43.31 per barrel from $41.12.

As reported earlier, from May 1, 2020 Azerbaijan started reduction of oil production within the framework of obligations under the new deal OPEC+.

Under the new agreement, Azerbaijan, which produced 718,000 bpd of crude oil in October 2018, should reduce production by 164,000 barrels.