EIA increases outlook for Azerbaijan's oil production

Azerbaijan's petroleum and other liquids production will stand at 0.77 million barrels per day in 2020, the US Energy Information Administration (EIA) said in its March Short-term Energy Outlook (STEO), Report informs.

EIA has increased the forecasted volume of oil output in Azerbaijan for 2021 when the country is expected to produce 0.75 million barrels per day, as compared to about 0.74 million barrels per day predicted in the previous STEO.

According to the company's estimates, Azerbaijan's daily output in 2019 was about 0.80 million barrels of petroleum and other liquids.

EIA also expects OPEC crude oil production will average 29.1 million barrels per day in the second and third quarters 2020, up from 28.7 million barrels per day in the first quarter of 2020. However, OPEC's target on output amid low oil demand is uncertain, and realized levels would have a significant effect on crude oil prices.

Besides, EIA forecasts Brent crude oil prices will average $43 per barrel in 2020, down from predicted $65 per barrel in the January STEO, and then increase to an average of $55 per barrel in 2021. According to EIA, the decline in liquid fuel demand combined with an increase in OPEC production during the next two quarters will contribute to significant improvements in global liquid fuel inventories.