Azerbaijan’s Azeri Light gains to $110.48 as oil prices rise

The price of Azerbaijan’s Azeri Light crude rose above $110 per barrel on global markets, increasing by $0.5, or 0.45%, to reach $110.48, according to a source in the oil market cited by local media.

By comparison, July futures for Brent crude settled at $105.24 at the close of trading, reflecting a narrower spread between benchmark Brent and Azerbaijan’s premium-grade oil.

At Türkiye’s Ceyhan port, the price of Azerbaijani crude delivered under FOB terms also increased, rising by $0.59, or 0.55%, to $107.6 per barrel.

Despite the current elevated prices, Azerbaijan’s state budget for this year is based on a much lower benchmark oil price of $65 per barrel.

Historically, Azeri Light has experienced significant volatility. Its lowest recorded price was $15.81 on April 21, 2020, while its peak reached $149.66 in July 2008.

Oil production in Azerbaijan is primarily carried out under the development agreement for the Azeri-Chirag-Gunashli (ACG) block of fields. The State Oil Company of Azerbaijan (SOCAR) holds a 31.65% stake in the contract.

By Tamilla Hasanova