Daily oil production in Azerbaijan will be 0.85 million barrels and 0.81 million barrels in 2016 and 2017 respectively, according to the U.S. Energy Information Administration (EIA) short-term energy outlook.
Previous outlook forecasted the oil production in Azerbaijan at 0.82 million barrels per day in 2016 and 0.8 million barrels per day in 2017. The country’s oil production stood at 0.86 million barrels per day in 2015, according to the EIA.
The main oil output in Azerbaijan currently comes from the Azeri-Chirag-Guneshli field. The Azerbaijani Light oil is produced at that block. Azerbaijan’s proven oil reserves stood at seven billion barrels as of early 2015, according to BP.
The country produced 41.69 million tons of oil and gas condensate in 2015, or 0.8 percent less than in 2014, according to the State Statistical Committee of Azerbaijan.
The price of a barrel of Azeri Light crude oil increased $1.40 to stand at $48.64 on the world markets on July 13.
Meanwhile, EIA expects Benchmark North Sea Brent crude oil prices to be at $43.73 per barrel in 2016 and $52.15 per barrel in 2017. Average West Texas Intermediate (WTI) crude oil prices are forecast to be the same as Brent in 2016 and in 2017.
“However, the current values of futures and options contracts suggest high uncertainty in the price outlook,” the report said.
Brent prices averaged $48 per barrel in June. The figure became the fifth consecutive monthly increase since reaching a 12-year low of $31 per barrel in January. The monthly average price of Brent increased by $2 in June and reached $48 a barrel. The figure was the highest monthly average for Brent since October 2015.
“This was the fifth consecutive increase in the monthly average Brent price”.
The price of Brent in EIA June report was at $43.03 and $51.81 per barrel in 2016 and 2017 respectively. WTI price in previous report was at $42.83 and $51.82 per barrel in 2016 and 2017 respectively. Brent price averaged $52.32 per barrel in 2015 while WTI prices amounted to $48.67 per barrel.
The global demand for oil and other liquid hydrocarbons will rise to 95.29 million barrels per day in 2016 and to 96.78 million barrels per day in 2017, according to EIA.