The price of Azeri Light, Azerbaijan's flagship crude oil, has decreased on the world market, with the value of one barrel falling by $5.05 (or 4.04%) to settle at $119.98.
A source in the oil market informed the Operative Information Center-OMM regarding the latest price fluctuations. According to the results of the latest auctions, the price of June futures for Brent crude oil stood at $126.11 per barrel. Meanwhile, on a Free on Board (FOB) basis at the Turkish port of Ceyhan, the price of Azeri Light decreased by $5.04, or 4.2%, to reach $114.84 per barrel.
In the state budget of Azerbaijan for the current year, the average price of one barrel of oil was calculated at $65. Despite the recent dip, current market prices remain significantly higher than the conservative estimates used for fiscal planning in the country. Historically, the lowest price for Azeri Light was recorded on April 21, 2020 ($15.81), while its all-time high was reached in July 2008 ($149.66).
Azeri Light 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% share in the agreement. The ACG field, located in the Caspian Sea, serves as the primary source of Azerbaijan's oil exports, fueling the country's economy and playing a vital role in European energy security through the Baku-Tbilisi-Ceyhan (BTC) pipeline.
