Azerbaijan's Azeri Light crude drops more than 5%

The price of Azerbaijan's flagship Azeri Light crude fell by more than 5% on the global market, tracking a broader decline in oil prices.

According to a source in the oil market cited by local media, Azeri Light dropped $5.05, or 5.22%, to $91.68 per barrel.

Meanwhile, Brent crude for September delivery settled at $85.96 per barrel at the close of trading.

The price of Azeri Light crude exported via the Turkish port of Ceyhan on FOB (Free on Board) terms also declined, falling $4.66, or 4.98%, to $88.88 per barrel.

Despite the latest decline, Azerbaijan's benchmark crude remains well above the $65 per barrel oil price assumption used in the country's 2026 state budget.

Azeri Light has experienced significant price swings over the years. Its lowest recorded price was $15.81 per barrel on April 21, 2020, while it reached an all-time high of $149.66 per barrel in July 2008.

Most of Azerbaijan's oil production comes from the Azeri-Chirag-Gunashli (ACG) offshore field complex in the Caspian Sea. The State Oil Company of the Azerbaijan Republic (SOCAR) holds a 35.3% stake in the project.

By Aghakazim Guliyev