EIA: Azeri output to remain level

Azerbaijan’s oil production is forecast at 870,000 bopd in 2016, dropping to 860,000 bopd the following year, the US Energy Information Agency (EIA) said in its short-term energy outlook for the country on Wednesday.
The EIA expects the country’s output to reach 880,000 bopd over the first half of 2016, before settling at 870,000 bopd until Q2 2017. By Q4 2017, Azerbaijani production should have dipped to 850,000 bopd. Output peaked at slightly more than 1 million bopd in 2009 and 2010 before going into decline.
The drop in oil prices have hit the country hard. According to World Bank data, the oil and gas industry in Azerbaijan accounts for 37% of GDP and close to 30% of its exports. In 2015, the manat lost 52% against the dollar. While economic growth was a healthy 4% that year, the government, after years of surpluses, also ran a deficit of close to 8% of GDP.
The IMF forecasts growth to be a mere 2.5% for 2016. In January 2016, senior Azeri officials told CNN the country was considering taking out a USD 4 billion emergency loan.

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