Azerbaijan Boasts Overcompliance With Oil Output Cuts


The capital of the USA oil industry Houston is emerging from the price war sporting new downtown skyscrapers and the lingering glow from hosting last month's Super Bowl.

Oil prices edged lower Monday, as investors continued to weigh OPEC's production cuts against rising production in the U.S.

The conference, which will continue until March 10, is expected to focus on the impact of OPEC and Russia's decision to restrict oil production in the global oil market and crude oil prices along with the effects of the new USA government's energy policies on markets and companies. Latest weekly data from oil-field services company Baker Hughes Inc. showed the number of rigs drilling for oil in the US rose by seven to 609.

Russian Energy Minister Alexander Novak said it was too early to say if the deal to reduce oil production would be extended beyond the end of June.

Shale activity is humming in the hottest US oilfield, the Permian Basin, a 75,000 square mile expanse in West Texas.

"The United States responds more rapidly to price signals than other producers".

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Novak says one of the factors driving the world's energy producers together to forge the deal was the lack of investment in future oil projects. Better prices could stir a new round of merger activity, according to some analysts.

In February, the daily oil production in Azerbaijan amounted to 776,400 barrels, 50,000 barrels of which accounted for condensate.

That newfound investment vigor and projections for stronger shale production have kept a lid on the recovery.

Brent crude futures LCOK7, -0.20% traded on the ICE Futures exchange in London have traded in a tight range between $53 and $58 a barrel since the start of the year, while West Texas Intermediate crude CLJ7, -0.53% on the New York Mercantile Exchange has traded between $50 and $55 this year.

In November 2016, the OPEC states reached an agreement to cut oil production by 1.2 million barrels per day for the first half of 2017 to support the global oil prices. "There has been two years of substantial decline in investments", Birol said.