The price of one barrel of Azerbaijan's "Azeri Light" crude oil on the world market has increased by $2.99, or 2.5%, to reach $124.24 per barrel. This surge reflects the ongoing volatility in global energy markets and the high demand for Azerbaijan's premium light sweet crude.
Operative Information Center-OMM reports that over the past month, following the outbreak of armed conflict in the Middle East, the value of Azerbaijani oil has climbed by 70.8% ($51.5), reaching its maximum level for the period. According to the latest auction results, the price of May futures for Brent crude oil stood at $120.51 per barrel. Meanwhile, on an FOB basis at the Turkish port of Ceyhan, the price of "Azeri Light" increased by $3.03, or 2.6%, to settle at $117.44 per barrel.
The current market prices significantly exceed the fiscal projections of the Republic of Azerbaijan, as the average price of oil in this year's state budget was calculated at $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). In Azerbaijan, this grade of oil is produced under the contract for the development of the Azeri-Chirag-Gunashli (ACG) field block, where the State Oil Company of the Republic of Azerbaijan (SOCAR) holds a 31.65% stake. The ACG project remains the backbone of the country's energy sector, ensuring steady exports to European and global markets via the Baku-Tbilisi-Ceyhan (BTC) pipeline.
