Azerbaijani Energy Minister to Asharq Al-Awsat: OPEC+ Efforts Boost Balance, Organize Global Markets

Azerbaijani Energy Minister Parviz Shahbazov. (Asharq Al-Awsat)
Azerbaijani Energy Minister Parviz Shahbazov. (Asharq Al-Awsat)
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Azerbaijani Energy Minister to Asharq Al-Awsat: OPEC+ Efforts Boost Balance, Organize Global Markets

Azerbaijani Energy Minister Parviz Shahbazov. (Asharq Al-Awsat)
Azerbaijani Energy Minister Parviz Shahbazov. (Asharq Al-Awsat)

The world’s future lies within the “energy mix” concept, but oil will remain a primary energy source for decades to come, said Parviz Shahbazov, Azerbaijan’s energy minister.

According to Shahbazov, efforts spent by the Organization of the Petroleum Exporting Countries (OPEC) and its allies have helped reinforce and regulate global energy markets.

In an interview with Asharq Al-Awsat, Shahbazov reaffirmed that Azerbaijan intends on strengthening strategic cooperation with the Kingdom of Saudi Arabia so that it spans several economic fields and boosts economic collaboration between the two countries, especially in the energy field.

Shahbazov noted that Saudi Arabia and Azerbaijan would be partaking in a number of cooperation projects involving renewable energy.

Joint Projects

“We have signed an agreement with Saudi Arabia’s ACWA Power to lay the foundations for the construction of a 240-megawatt wind park,” Shahbazov told Asharq Al-Awsat, adding that the power station’s tremendous capacity is essential not only for renewable energy sources in Azerbaijan but all countries in the region.

Baku, Azerbaijan’s capital, is also eyeing cooperation with Riyadh in the field of gas.

“We have a desire to cooperate in the gas sector and gas power generation, which will certainly be one of the channels for expansion of cooperation between the two countries soon,” said Shahbazov.

The minister moved on to reveal that Azerbaijan is expecting the arrival of a Saudi delegation this month, a visit that will give a chance to discuss new opportunities for expanding economic cooperation between Baku and Riyadh.

“We expect a Saudi delegation to visit this month to celebrate together the launch of a 240-megawatt wind power plant. We look forward to soon discussing ways for expanding economic cooperation with the visiting Saudi delegation,” said Shahbazov.

Saudi Arabia and Azerbaijan have previously signed various trade, diplomatic and political agreements that Shahbazov said needed more robust activation through additional talks and consultations.

Market Stability

The minister explained that Saudi-Azerbaijani cooperation in the oil and gas sector is vital for the stability of global oil and gas markets.

Moreover, the minister acknowledged Saudi Arabia’s decades-old role in strengthening the global market balance and stabilizing energy prices.

Saudi Arabia has always undertaken leadership initiatives, he noted, adding that Azerbaijan had joined the OPEC+ group, which is one of the most critical channels for stabilizing the global energy market.

“Currently, we see in this formula one of the most important tools for enhancing stability and achieving balance in the global energy market,” said Shahbazov.

“It can address developments in a more appropriate way for the market in the future.”

For Shahbazov, oil will remain the primary energy source for several years to come. Therefore, the role played by OPEC+ in market stability will stay vital for the future of energy.

What is more important than stabilizing prices is ensuring the sustainability of the world’s power supply. Energy prices can change over time, but it will not have the same effect as a shift in global energy supplies.

“For that reason, it is fair to appreciate the efforts of OPEC+,” said Shahbazov.

Regarding gas supplies, he asked an urgent question: Why are there high gas prices in Europe at a time there is a shortage in supplies?

“Despite the existence of strategies to treat the product, it did not prevent the emergence of a price and gas crisis,” noted the minister, adding that the crisis will likely perpetuate into the future, especially during winter.

“However, this situation does not include other countries in the world, as this crisis situation does not apply to the oil sector,” said Shahbazov, praising the efforts spent by OPEC+ to draw an effective roadmap for containing the global energy and oil market.

Pandemic’s Challenging Aftermath

Shahbazov stressed that the coronavirus pandemic had produced a real crisis in global energy markets.

The crisis has highlighted the need for greater cooperation among all parties benefiting from oil production and consumption.

Besides having created a very critical and challenging situation for all actors in energy markets, the pandemic shed light on the massive need for a joint mechanism between OPEC and non-OPEC members. For the time being, OPEC+ is facing this challenging situation and trying to find solutions to contain the crisis.

Shahbazov affirmed that more crises would take place in the future if the mechanism for cooperation remains absent.

“This calls for using our experiences in dealing with such situations to address the urgent issues facing the work of the (OPEC +) mechanisms in global energy markets,” he said.

“In general, we began to cooperate and work with each other and we were able to achieve a form of sustainability for oil supplies,” he noted.

“We were able to launch a program to increase energy production supplies in global markets step by step and month by month, and this program will continue with us until the end of this year and the whole of 2022,” shared the minister.

Saudi Arabia’s Green Initiatives

New energy sources are certainly a factor of prosperity and development for the region, remarked Shahbazov, adding that renewable energy addresses a major global problem: climate change.

In Shahbazov’s opinion, promoting technological discoveries that address climate change by reducing carbon emissions, sustaining food stocks, and establishing environmentally friendly transportation is of paramount importance.

According to the minister, this is what the Saudi Green Initiative cares about and is working on translating on the ground.

“This initiative (Saudi Green Initiative) pushes the world towards much-needed cooperation for a quality of life without climate or environmental disasters,” said Shahbazov.



Aramco Begins East-West Pipeline Expansion to Boost Oil Export Flexibility

Aramco CEO Amin Nasser speaks at a press conference. (Reuters)
Aramco CEO Amin Nasser speaks at a press conference. (Reuters)
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Aramco Begins East-West Pipeline Expansion to Boost Oil Export Flexibility

Aramco CEO Amin Nasser speaks at a press conference. (Reuters)
Aramco CEO Amin Nasser speaks at a press conference. (Reuters)

Saudi Aramco President and CEO Amin H. Nasser said on Tuesday that preliminary engineering had already started on a planned expansion of the kingdom's vital East-West pipeline as part of plans to increase oil flows through existing infrastructure, assess alternative export routes and explore expanding crude storage capacity at major demand centers. 

"Preliminary engineering is underway for an expansion of the East-West pipeline," Nasser said in an earnings call. The CEO said last month that Aramco hoped to increase the capacity of the pipeline network from 7 million to 10 million barrels a day.

Aramco reported a 9% year-on-year increase in adjusted net profit to 117 billion riyals ($31.2 billion) in the third quarter of this year, beating analysts’ expectations of $30.66 billion.

Nasser said the pipeline played a key role in providing additional oil export options during the disruptions, adding that the company was also considering expanding crude oil storage capacity at major demand centers and along export routes.

He said the long-term value of the East-West Pipeline investment had become evident amid the current disruptions to regional trade, noting that the company had recovered the pipeline’s entire construction cost in about 15 days.

Production Capacity

Nasser said Aramco was exploring additional oil export routes and storage capacity outside the Kingdom, while using Gulf export terminals and ship-to-ship transfers to deliver supplies to customers.

He added that the company could raise its maximum sustainable production capacity above 12 million barrels per day if the government decides to do so.

Biggest Supply Shock in the Energy Industry

He described the regional conflict as the biggest supply shock in the energy industry, saying Aramco maintained customer commitments by diversifying export routes, restoring facilities and optimizing operations.

The company’s resilience, he said, stemmed from decades of planning, robust infrastructure, skilled employees, local supply chains and technological innovation, enabling it to continue delivering major projects safely and on schedule despite disruptions.

Zuluf Field Production Expansion

The CEO said work to expand production at the Zuluf field had begun as planned, with additional capacity of up to 600,000 barrels per day expected by the end of the year. He added that Aramco was continuing to advance major crude-to-chemicals projects both inside and outside the Kingdom.

He said the upstream segment delivered stable results, reflecting continued price strength despite a decline from the previous quarter. Meanwhile, adjusted earnings before interest and taxes (EBIT) in the downstream segment rose by more than $4 billion quarter on quarter.

Ability to Restore Production Within Weeks

Nasser said supplies had become indispensable, and demand remained strong, adding that Aramco could rapidly ramp up production. This capability positioned the company to generate significant financial gains.

More Than 90% of Restart Materials Sourced Locally

Aramco faced significant challenges during the disruptions but managed them through flexibility, speed, multiple options and operational excellence, he stated.

He explained that the company’s integrated response center coordinates management teams with specialized, multidisciplinary rapid-assessment teams, enabling a swift response to incidents and disruptions.

Nasser said Aramco’s local supply chains enabled the rapid sourcing and rerouting of critical materials to ensure operational continuity. The company also uses drones for real-time damage assessments, with more than 90% of restart materials sourced domestically. Independent benchmarks show Aramco completes emergency repairs six times faster than the industry average.

Capital Expenditure

Aramco remained disciplined in its capital spending, maintaining its 2026 capital expenditure guidance at $50 billion-$55 billion, Nasser undescored. The forecast includes costs to restore assets to service and a $2.6 billion cash investment in HUMAIN.

Aramco Invests $2.6 Billion in HUMAIN

He described Aramco’s 49% stake in HUMAIN, backed by a $2.6 billion cash investment and the transfer of key AI assets, as a strategic move to strengthen its competitive advantage and accelerate AI-driven growth.

The investment combines Aramco’s technology infrastructure, more than 90 years of operational experience and low-cost, lower-carbon energy to meet growing demand for AI computing.

HUMAIN aims to develop an integrated AI platform spanning data centers, cloud infrastructure, models and applications, with plans to reach 3 gigawatts of data center capacity by 2030 and become a leading global exporter of AI services.


Investors Ready for Possible Shake-up in Congress as Election Day Arrives

 A fountain near the US Capitol glows blue before sunrise on the day of the US midterm elections in Washington, DC, US, November 3, 2026. (Reuters)
A fountain near the US Capitol glows blue before sunrise on the day of the US midterm elections in Washington, DC, US, November 3, 2026. (Reuters)
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Investors Ready for Possible Shake-up in Congress as Election Day Arrives

 A fountain near the US Capitol glows blue before sunrise on the day of the US midterm elections in Washington, DC, US, November 3, 2026. (Reuters)
A fountain near the US Capitol glows blue before sunrise on the day of the US midterm elections in Washington, DC, US, November 3, 2026. (Reuters)

Investors are weighing the market ‌implications of a possible shift in control of US Congress in Tuesday's midterm elections, focused on whether a strong Democratic showing could pave the way for greater volatility in asset prices, particularly the AI trade which has been a main driver for markets.

The midterms come at a fragile time for markets, with a swoon in AI shares causing investor unease that could be exacerbated by the election results. Tuesday's outcome could hold broad implications for market-sensitive areas including the AI data-center buildout, the US fiscal outlook, defense spending, and regulation in areas such as healthcare, banking and cryptocurrencies.

President Donald Trump's Republican party has controlled both chambers of Congress during the first two years of his second term. Opinion polls ‌show the Democrats ‌are likely to take the House, while the Senate is ‌too ⁠close to call.

"While ⁠probabilities increasingly favor a Blue sweep, several tightly contested Senate races leave open some possibility of Republican control of the Senate or, conversely, a greater than expected Democratic foothold in the Senate," Scott Chronert, US equity strategist at Citigroup, said in a research note. "Equity market reaction is likely positive in the former case and negative in the latter."

Strategists at UBS Global Wealth Management have assigned a 50% probability of a Democratic sweep, a 40% chance ⁠of Democrats winning the House while Republicans retain the Senate, and ‌a 10% probability that Republicans hang onto both ‌chambers.

"The most visible effects of a change in congressional control would likely be greater oversight of ‌the administration and more difficult fiscal negotiations," Mark Haefele, chief investment officer at UBS ‌Global Wealth Management, said in a note on Monday.

A Democratic-led Congress could exert greater scrutiny over AI companies, in part due to growing public opposition to data centers, a risk for a market that has been lifted by such investment spending. While analysts doubt any viable legislation would severely ‌undermine the data-center buildout regardless of the election outcome, they expect a Democratic sweep to lead to investigations into the technology ⁠sector.

Many investors have ⁠said they are eager to get past the elections, which have hung over the markets for the last several weeks. Since 1970, in midterm election years, the S&P 500 index has gained in every six-month period following the election, according to Edward Jones.

While equity volatility has increased in recent sessions, option-market traders are nonetheless not bracing for a massive stock market move following the election results.

Options on the S&P 500 index are priced for a move of about 0.8% in either direction on Wednesday, slightly higher than the 0.6% average implied daily move over the past month, according to ORATS data.

"We could see some volatility come out once there is a clear result, but I wouldn’t assume all that uncertainty disappears Wednesday morning," said Joe Tigay, portfolio manager at Equity Armor Investments. "Election hedges can expire; geopolitical risk doesn’t have an expiration date."


Europe Entering Winter with Lowest Gas Reserves Since 2013, Says IEA

07 July 2025, Rehden: Technical facilities for the injection and withdrawal of natural gas, including several process water tanks, are located on the grounds of the Rehden natural gas storage facility operated by SEFE Storage GmbH. (dpa)
07 July 2025, Rehden: Technical facilities for the injection and withdrawal of natural gas, including several process water tanks, are located on the grounds of the Rehden natural gas storage facility operated by SEFE Storage GmbH. (dpa)
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Europe Entering Winter with Lowest Gas Reserves Since 2013, Says IEA

07 July 2025, Rehden: Technical facilities for the injection and withdrawal of natural gas, including several process water tanks, are located on the grounds of the Rehden natural gas storage facility operated by SEFE Storage GmbH. (dpa)
07 July 2025, Rehden: Technical facilities for the injection and withdrawal of natural gas, including several process water tanks, are located on the grounds of the Rehden natural gas storage facility operated by SEFE Storage GmbH. (dpa)

Europe is entering winter with its lowest level of natural gas reserves since 2013, which could extend pressure on the international market into 2027, the International Energy Agency warned Tuesday.

Europe's natural gas storage reservoirs were 75 percent full at the end of October, well below the minimum target of 80 percent fixed by the European Union and at its lowest level in more than a decade, the IEA said.

Several factors explain the situation.

Natural gas liquefaction facilities in the Gulf have been damaged in US-Iran war, while transit through the Strait of Hormuz has been reduced.

Moreover, European nations are filling their storage reservoirs from low levels at the end of the heating season in the spring.

Buyers had initially held off buying stocks in the hope prices would fall.

Deliveries stepped up in August, September and October, but not enough to make up for the delay, the IEA said.

The amount of gas injected into storage reservoirs this season was about four percent below the average of the past five years, it added.

That makes European nations more dependent upon securing deliveries of additional supplies of LNG to meet peak demand.

It could also make more vulnerable if the winter is colder than usual, there are technical problems in the gas network, or supply problems, said the IEA.

Germany insisted Monday that it would have enough gas for the winter despite missing a storage target.

German gas storage facilities are on average 61 percent full, according to the federal agency that oversees Germany's energy infrastructure and markets.

That is below a legally mandated target for 70 percent by November 1. It also lags behind the European Union average of nearly 75 percent, according to the storage tracking platform AGSI.