The price of one barrel of Azeri Light crude oil has increased by $4.3 (or 3.36%) on the world market, reaching $132.35 per barrel.
A source in the oil market informed Operative Information Center-OMM about the latest price surge. According to the results of the most recent auctions, the price of June futures for Brent crude oil stood at $127.24. Simultaneously, the price of Azeri Light on a FOB basis at the Turkish port of Ceyhan rose by $4.5 (3.72%) to reach $125.55 per barrel. For comparison, the average price of oil in the state budget of Azerbaijan for the current year is calculated at $65 per barrel.
Historically, the lowest price for Azeri Light was recorded on April 21, 2020 ($15.81), while the maximum price was reached in July 2008 ($149.66). In Azerbaijan, this grade of oil is produced within the framework of the contract for the development of the Azeri-Chirag-Gunashli (ACG) field block. The State Oil Company of the Republic of Azerbaijan (SOCAR) holds a 31.65% stake in that agreement.
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 oil exports. The significant gap between the current market price and the $65 budget forecast suggests a substantial increase in foreign exchange inflows to the State Oil Fund of Azerbaijan (SOFAZ) and the national treasury, strengthening the country's fiscal position and supporting large-scale reconstruction projects in Garabagh and East Zangezur.
