The price of one barrel of Azerbaijan's Azeri Light crude oil on the world market has increased by $10.89, or 8.33%, reaching $141.68.
According to sources in the oil market who spoke to the Operative Information Center-OMM, the price of June futures for Brent crude stood at $141.37 per barrel following the latest auctions. Furthermore, the price of Azeri Light on a FOB basis at the Ceyhan port in Türkiye rose by $11.07 (or 8.92%) to settle at $135.15 per barrel.
This sharp increase provides a significant fiscal cushion for the Republic of Azerbaijan, as the country's state budget for the current year was calculated based on an average oil price of $65 per barrel. Historically, the lowest price for Azeri Light was recorded on April 21, 2020 ($15.81), while the all-time high was reached in July 2008 ($149.66). The crude is produced under the framework of the contract for the development of the Azeri-Chirag-Gunashli (ACG) block of fields, where the State Oil Company of the Republic of Azerbaijan (SOCAR) holds a 31.65% stake.
The energy sector remains the backbone of Azerbaijan's economy, with the ACG fields serving as the primary source of the country's oil exports. These developments in the global energy market are closely monitored in Baku, as oil revenues play a crucial role in funding infrastructure projects and social programs across the country. The strategic importance of the Baku-Tbilisi-Ceyhan (BTC) pipeline continues to be a vital link in ensuring European energy security by transporting Caspian crude to international markets.
