Azerbaijan’s benchmark crude jumps to $104.58

The price of Azerbaijan’s Azeri Light crude surged above $100 per barrel on June 2, rising sharply in line with broader market gains.

A source in the oil market told Caliber.Az correspondent that the benchmark grade increased by $6.57, or 6.7%, to $104.58 per barrel on international markets.

At the same time, July futures for Brent crude settled at $100.3 per barrel, underscoring strong upward momentum in global oil prices.

Azeri Light prices on an FOB basis at the Turkish port of Ceyhan, the export terminal for the Baku-Tbilisi-Ceyhan pipeline, also recorded gains. The BTC FOB price rose by $6.59, or 6.87%, to $102.48 per barrel.

The rally places Azeri Light significantly above the baseline assumption used in Azerbaijan’s state budget for the year, which is calculated at an average oil price of $65 per barrel.

Historically, Azeri Light has experienced substantial price volatility. Its lowest recorded level was $15.81 per barrel on April 21, 2020, during the global oil market collapse, while its peak reached $149.66 in July 2008.

The crude is produced under the long-term development agreement for the Azeri–Chirag–Gunashli (ACG) block, one of the country’s крупнейших offshore assets in the Caspian Sea. State Oil Company of Azerbaijan Republic (SOCAR) holds a 31.65% stake in the contract.

By Tamilla Hasanova