The price of one barrel of Azerbaijan's "Azeri Light" brand oil on the world market has increased by $7.55, or 6.6%, reaching $121.25 per barrel. This sharp rise reflects the ongoing volatility and upward trend in global energy markets.
Operative Information Center-OMM reports that according to the latest auction results, the price of May futures for "Brent" crude oil stood at $117.49 per barrel. Additionally, the price of "Azeri Light" on a FOB basis at the Turkish port of Ceyhan rose by $7.17, or 6.7%, to settle at $114.41 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 record high of $149.66 was reached in July 2008. In Azerbaijan, this grade of oil is produced within the framework of the agreement 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 field block, located in the Caspian Sea, is 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 sustained high prices for Azeri Light provide a substantial boost to the national economy and foreign exchange reserves, strengthening Azerbaijan's position as a key energy supplier to European and global markets through the Baku-Tbilisi-Ceyhan (BTC) pipeline.
