Azerbaijani oil nears $118, far above budget benchmark

The price of Azeri Light crude oil has surged to nearly $118 per barrel on global markets, reflecting a sharp increase amid ongoing volatility in energy markets.

According to a market source cited by Caliber.Az, the price rose by $9.63, or 8.9%, reaching $117.79 per barrel.

At the same time, May futures for Brent crude oil settled at $112.53 per barrel.

At the Turkish export hub of Ceyhan, the price of Azerbaijani oil under FOB terms increased by $9.65, or 9.25%, to $113.95 per barrel.

The current price level significantly exceeds the benchmark used in Azerbaijan’s state budget for the year, which is set at $65 per barrel.

Historically, the lowest recorded price for Azeri Light was $15.81 on April 21, 2020, while the highest reached $149.66 in July 2008.

Oil production in Azerbaijan is primarily carried out under the agreement for the development of the Azeri-Chirag-Gunashli block of fields. The SOCAR holds a 31.65% stake in this project.

By Tamilla Hasanova