Azeri Light breaks $104 as oil markets tighten

The price of Azerbaijani Azeri Light crude has climbed above $104 per barrel amid a broader rally in global oil markets, far exceeding the country’s budget assumptions.

Azeri Light rose by $2.72, or 2.67%, to $104.40 per barrel on international markets, according to a market source cited by local media.

Benchmark Brent crude for August delivery settled at $101.24 per barrel, underscoring firming sentiment across global energy markets.

At the Turkish port of Ceyhan, Azeri Light under FOB terms increased by $2.72, or 2.74%, to $101.98 per barrel.

The Azerbaijani state budget for the current year is calculated on an oil price of $65 per barrel, meaning current levels are significantly above fiscal projections.

Historically, Azeri Light prices have seen sharp volatility, with a record low of $15.81 recorded on 21 April 2020 during the pandemic downturn, and a peak of $149.66 in July 2008.

Azerbaijan’s oil production is mainly carried out under the Azeri–Chirag–Gunashli (ACG) production-sharing agreement, in which the State Oil Company of Azerbaijan (SOCAR) holds a 31.65% stake.

By Aghakazim Guliyev