Azerbaijani oil prices fall as global crude markets weaken

The price of Azerbaijan’s Azeri Light crude oil declined on global markets, falling by $2.54, or 3.07%, to $80.06 per barrel.

At the close of trading, August futures for Brent crude were priced at $77.50 per barrel, reflecting broader weakness in international energy markets, a source in the market told local media. 

Separately, the price of Azerbaijani crude delivered to Ceyhan, Türkiye, on a FOB basis also fell by $2.50, or 3.11%, to $77.88 per barrel.

Azerbaijan’s state budget for the current year is based on an assumed oil price of $65 per barrel.

Historically, Azeri Light crude has seen significant volatility, reaching a record low of $15.81 per barrel on 21 April 2020 and a peak of $149.66 in July 2008.

Oil production in Azerbaijan is primarily carried out under the development agreement for the Azeri–Chirag–Gunashli oil field (ACG) block. The State Oil Company of Azerbaijan Republic, SOCAR, holds a 31.65% stake in the consortium.

By Sabina Mammadli