The price of Azeri Light brand Azerbaijan oil has risen sharply on the world market, reaching a new threshold. According to the latest data, the price of one barrel of oil increased by 3.07% (or $3.81) to stand at $128.05.
A source in the oil market provided this information to the Operative Information Center-OMM. Based on the results of the auctions, the price of May futures for Brent crude oil settled at $123.49. At the same time, the price of one barrel of Azeri Light on an FOB basis at Turkey's Ceyhan port also increased by 3.07% ($3.61) to reach $121.05. It should be noted that in the state budget of Azerbaijan for this year, the average price of one barrel of oil was calculated at $65.
As a reminder, the lowest price for Azeri Light oil was recorded on April 21, 2020 ($15.81), while the maximum price was reached in July 2008 ($149.66). In Azerbaijan, this brand of oil is produced within the framework of the agreement on the development of the Azeri-Chirag-Gunashli (ACG) field block. The share of the State Oil Company of the Republic of Azerbaijan (SOCAR) in the contract is 31.65%.
The ACG field, located in the Caspian Sea, remains the largest oil field in the Azerbaijan sector of the Caspian basin and serves as the primary source of the country's hydrocarbon exports. The significant gap between the current market price and the $65 budget forecast provides a substantial fiscal cushion for the Cabinet of Ministers, potentially allowing for increased investment in the reconstruction of liberated territories in Garabagh and East Zangezur. Azerbaijan continues to play a vital role in European energy security through the Baku-Tbilisi-Ceyhan (BTC) pipeline, which transports the majority of Azeri Light to international markets.
