Energy in Azerbaijan

[Vrej1915]

Re: Energy in Azerbaijan

Saudi Arabia, Russia, Qatar, Venezuela Agree to Freeze Oil Output



http://www.wsj.com/articles/saudi-ru...15900?mod=e2fb

Iran says it is 'illogical' for it to join oil output freeze

http://www.bbc.com/news/business-35593628

Iran's Opec envoy is reported as saying it is "illogical" for it to join the oil output freeze agreed by a Russian and Saudi Arabian-led group on Tuesday.
Mehdi Asali, quoted in the Iranian newspaper, Shargh, said Iran will continue to increase oil production until it reaches pre-sanction levels.
Venezuela's oil minister is due to hold talks in Tehran to broker a deal with Iran and Iraq on Wednesday.
Iran has only just restarted oil exports after sanctions were lifted.
The move by four countries, including Venezuela and Qatar, is the first of its kind in 15 years.
It is designed to reflate oil prices, which have sunk by about 70% from their recent peak of $116 in June 2014 thanks to oversupply as the global economy slows down.
The plan though failed to convince oil traders.
In Tuesday trading the price of a barrel of Brent crude fell by 3.2% and a further 1.3% in early Wednesday trading. before recovering to stand up 1% at $31.52 a barrel.
FGE, international energy analysts, said: "Moves to freeze output at January levels will make little difference to the overall supply-demand balance this year and will not be enough to clear the 600,000 barrels per day surplus projected for the year."
'Special terms'
Iraq's oil ministry is in favour of capping production.
It said it was ready to commit to a production freeze if a deal was reached among other producers.
But Iran's Mr Asali said to Shargh: "Asking Iran to freeze its oil production level is illogical... when Iran was under sanctions, some countries raised their output and they caused the drop in oil prices.
"How can they expect Iran to co-operate now and pay the price?"
An Iranian women at the petrol pumpImage copyrightReuters
Image caption
Iran wants to increase oil production to levels seen before sanctions
Paul Stevens from the Royal Institute of International Affairs at Chatham House and an expert on the oil markets said: "Before sanctions in 2012 Iran was producing around 4.4 million barrels a day.
"Just before sanctions were lifted in mid-January 2016 it was producing 2.8 million barrels per day.
"Officials have previously said they wish to increase it to 4 million barrels a day within the next three months. I think that is a wildly optimistic figure, but any increase still presents problems in terms of oversupply."
Two non-Iranian sources close to the Opec discussions told Reuters that Iran could be offered special terms as part of the output freeze deal.
'Not credible'
There are doubts over the worth of the move.
Mr Stevens agreed an exception might be made for Iran, but he believed Monday's agreement had "no credibility whatsoever".
He pointed out that Russia - not a member of the Opec cartel - had reneged on previous production agreements.
It last agreed to co-operate with Opec back in 2001, but never followed through on its pledge and raised exports instead.
"I believe the Saudis are playing a game. They have agreed to this deal knowing others are unlikely to stick to it, but after a few months it allows them to take the moral high ground and continue with their strategy of protecting market share at the expense of price.
"I assume Russia agreed to it because they are struggling to keep up production at the present level, so why not make a virtue out of necessity?"
Tensions also remain between Saudi Arabia and Russia over Syria.
Russia is supporting President Assad's regime, with help from Iran, while Saudi Arabia as the is backing opposition forces.

[Hakob]

Re: Energy in Azerbaijan

but F1 is still on it seems

Azerbaijan signs 10-year-contract for holding Formula-1

Azerbaijan has signed a contract for holding the Formula-1 European Grand Prix for 10 years, Azad Rahimov, Azerbaijani minister of youth and sports, told reporters Feb. 8.

The minister added that if Azerbaijan within five years takes a decision not to hold this competition, the country will be fined.

Rahimov added that at its own wish Azerbaijan can either continue or suspend holding the competition for the next five years of the ten-year contract.

"But this competition must be held for the first five years,” he said. “The budget for the Formula 1 European Grand Prix is still $12 million. It consists of fees and organizational costs. The full information will be disclosed later."

Azerbaijan will for the first time host the Formula 1 European Grand Prix. The competition will start on June 19 at 18:00 (UTC/GMT +4 hours).

http://en.trend.az/azerbaijan/society/2491434.html

Ha Ha Ha Ha....
How funny baboons are. The benefits of formula one are, to advance technical know how and advertisement for car manufacturing states, to entertain the elite from world over (like Monaco), to compete in fast car sport.
None of those Azeris have.
If they are trying to advance tourism, then what a waist this is.
To entertain local population?
Imagine, how much a sheep herder wil understand and appreciate those "not practical and strange" cars wheezing by.
Some day they may run their sheep like formula ones?
For an average Azeri that sees his earnings plummet by day and everything getting out of reach, 10 years of something that has no meaning in his/her life shure is a great comfort.

[Mher]

Re: Energy in Azerbaijan

but F1 is still on it seems

Azerbaijan signs 10-year-contract for holding Formula-1

Azerbaijan has signed a contract for holding the Formula-1 European Grand Prix for 10 years, Azad Rahimov, Azerbaijani minister of youth and sports, told reporters Feb. 8.

The minister added that if Azerbaijan within five years takes a decision not to hold this competition, the country will be fined.

Rahimov added that at its own wish Azerbaijan can either continue or suspend holding the competition for the next five years of the ten-year contract.

"But this competition must be held for the first five years,” he said. “The budget for the Formula 1 European Grand Prix is still $12 million. It consists of fees and organizational costs. The full information will be disclosed later."

Azerbaijan will for the first time host the Formula 1 European Grand Prix. The competition will start on June 19 at 18:00 (UTC/GMT +4 hours).

http://en.trend.az/azerbaijan/society/2491434.html

[Mher]

Re: Energy in Azerbaijan

This is surreal. This is bound to do wonders for tourism and public safety.

[Azad]

Re: Energy in Azerbaijan

Lights Out In Baku: Austerity Dims Azerbaijan's Capital

http://www.rferl.org/media/video/azerbaijan-baku-lightsout/27555956.html

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Enjoy, gentlemen. They can literally no longer afford to keep the lights on.

Always wanted to visit Baku with a flashlight.

[HyeSocialist]

Re: Energy in Azerbaijan

Lights Out In Baku: Austerity Dims Azerbaijan's Capital

http://www.rferl.org/media/video/azerbaijan-baku-lightsout/27555956.html

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Enjoy, gentlemen. They can literally no longer afford to keep the lights on.

[Mher]

Re: Energy in Azerbaijan

Saudi Arabia, Russia, Qatar, Venezuela Agree to Freeze Oil Output

By SUMMER SAID and BENOIT FAUCON
Updated Feb. 16, 2016 12:40 p.m. ET


Saudi Arabia, Russia, Qatar and Venezuela said Tuesday they wouldn’t increase crude-oil output above January’s levels as long as other major oil producers followed suit, in the first coordinated move to boost oil prices in years.

The agreement was struck after a short meeting in Qatar, but it came with a significant caveat: Iran and Iraq must also halt production increases. Iraq’s production has soared to record levels as it furiously pumps to generate revenue to fight a war against Islamic State, while Iran is trying to ramp up output now that Western sanctions over its nuclear program have ended.

An Iranian oil official said Tuesday that Tehran has no immediate plans to cap its surging oil output. “We have made it very clear we will return our production to its level prior to the sanctions” imposed by the U.S. and other nations, the official said.

Oil prices surged more than 5% higher during the meeting but lost ground after news of the agreement emerged. Brent crude was down 2.8% at $33.06 a barrel and WTI was 1.2% lower at about $29.09 a barrel in midday New York trading.

The pact still marked a significant departure for Saudi Arabia and the Organization of the Petroleum Exporting Countries after more than a year of letting oil prices fall to their lowest levels in more than a decade. A production “freeze” represented a compromise with countries like Venezuela that have wanted an outright cut to bring supply back into line with demand.


Mr. Naimi said the move was “simply the beginning of a process to assess in the next few months and decide whether we need other steps to stabilize and improve the market.” He said rising demand would eventually catch up to oil supplies.


Iran could be offered special terms to increase its output to a certain level above its January levels, OPEC officials familiar with the matter said. Iran produced 2.99 million barrels a day in January, according to the International Energy Agency, which monitors oil trends for industrialized nations.

Bijan Zanganeh, Iran’s oil minister, told state media on Tuesday that it was important for Iran to “not withdraw its share” of the oil market. He is set to discuss oil production with his Venezuelan counterpart, Eulogio Del Pino, and Iraq’s oil minister, Adil Abdul-Mahdi, on Wednesday in Tehran.

“It requires discussion and examination,” he said of the Saudi-Russia pact, adding he hadn’t been directly informed of the meeting.

The Iranian oil official said he had not been informed of a proposed Venezuelan compromise to partially exempt Tehran from a full freeze. But the official said that agreeing to any curb on planned increases wouldn’t be acceptable. “Everybody [in the Islamic Republic] wants production to return to its level of before sanctions,” he said.

Iran has said it ramped up production by 400,000 barrels a day and started shipping crude to Europe. It would have to add another 1 million barrels a day of production to reach presanctions levels.

“We will start intensive communication almost straightaway with other major producers, OPEC and non-OPEC, including Iran and Iraq,” said Mohammed al-Sada, Qatar’s minister of energy and industry. “We think other producers need to freeze straight away including Iran and Iraq.”

Iraq officials didn’t immediately respond to requests for comment.

The price rally on Tuesday morning was short-lived because the market expected a production cut, instead of a production freeze, said Edward Bell, a commodity analyst at Dubai-based Emirates NBD.

“I don’t think this does anything to combat the overriding issue of oversupply,” Mr. Bell said in an interview.

For Saudi Arabia, the world’s largest exporter of crude oil, the cooperation of other producers has been paramount for any agreement.

Higher production from the U.S., Iraq, Russia and others has made OPEC’s price-hiking tool—an output cut—less effective, OPEC officials have said, because it would only benefit rivals.

Russia, which isn’t an OPEC member, produced a post-Soviet record in January of 10.88 million barrels a day. Russian Energy Minister Alexander Novak said Russia’s 2016 production would “on average” be at its January levels.

Saudi officials have been reluctant to make an output deal with the Kremlin. During oil-price downturns in 2001 and 2008, Russia promised to curb output to prop up prices but instead it increased crude exports while Saudi Arabia cut back.

Halting production increases won’t likely help reduce the world’s oversupply of oil. Qatar and Venezuela were already producing at or near capacity, Russia’s production is expected to be flat or decline this year, and Saudi Arabia’s output wasn’t expected to increase significantly.

The Saudi-Russia agreement doesn’t represent an official decision by OPEC, which doesn’t meet again until June in Vienna.

Freezing production could hurt Saudi Arabia’s exports in the summer, when a larger portion of its crude-oil output is burned domestically to produce electricity for air conditioners. Saudi Arabia often increases its production in the summer to keep exports high while also satisfying local demand.

http://www.wsj.com/articles/saudi-russia-qatar-venezuela-agree-to-freeze-oil-output-at-januarys-levels-1455615900?mod=e2fb

[HyeSocialist]

Re: Energy in Azerbaijan

AZERI LIGHT AT FIVE-YEAR LOW VERSUS DATED BRENT ON OVERSUPPLY

London (Platts)--15 Feb 2016 821 am EST/1321 GMT

Azeri Light has fallen to a five-year low versus Dated Brent due to oversupply amid reduced demand going into refinery maintenance season, sources said Monday.

Aframax cargoes of distillate-rice Azeri Light, basis CIF Augusta, were assessed Friday at a premium of $1/b to the forward Dated Brent market, the lowest since November 2010.

"Azeri is under pressure," a trader said Monday. "There are many barrels still available and no demand."

Azeri Light values have tumbled since the last decade of January when the grade was at a $2.40/b premium to Dated Brent following a sharp decline in gasoline and naphtha cracks.

European gasoline cracks moved lower after refiners maximized light ends output on the back of high margins, with increased supply compounded by the closing of arbitrage opportunities which had been supporting cracks.

"I think we are oversupplied. Margins are lower," said a Azeri Light trader.

The Azeri Light loading program for March, released last week, showed the most volume available for export next month since October.

Total loadings of Azeri Light at the Turkish port of Ceyhan are set to rise 1.77 million barrels in March to 21.85 million barrels at an average loading rate of 704,838 b/d, up 12,425 b/d from February.

That came with demand expected to be hit by the refinery maintenance season and amid a lack of arbitrage to Asia.

Other sweet grades, such as CPC Blend, have experienced similar declines, with the Kazakh grade plummeting to its lowest level since end-June 2015, Platts data showed.

http://www.platts.com/latest-news/oil/london/azeri-light-at-five-year-low-versus-dated-brent-26368636

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[armnuke]

Re: Energy in Azerbaijan

Azerbaijan Raises Rates First Time Since 2011 as Oil Jolts Manat

http://www.bloomberg.com/news/articles/2016-02-15/azerbaijan-raises-rates-first-time-since-2011-as-oil-jolts-manat

[armnuke]

Re: Energy in Azerbaijan

Azeri cenbank sells $32.1 mln on forex market on Monday

Feb 15 Azerbaijan's central bank said it had sold $32.1 million on the foreign exchange market on Monday to support the rate of the national manat currency.

http://www.reuters.com/article/azerbaijan-cenbank-manat-idUSR4N15Q005?feedType=RSS&feedName=financialsSector