Azeri Light oil price falls sharply to $90.5 per barrel

The price of Azerbaijan’s Azeri Light crude oil on the global market has fallen by $6.35, or 6.55%, to $90.5 per barrel, a market source told Report.

Following trading, August futures for Brent crude were recorded at $88.23 per barrel.

The price of Azeri Light oil delivered on a free-on-board (FOB) basis at Türkiye’s Ceyhan port also declined by $6.33, or 6.69%, to $88.23 per barrel.

Despite the drop, Azerbaijan’s state budget for this year is calculated based on an oil price of $65 per barrel.

Historically, Azeri Light has seen significant volatility, reaching its lowest level of $15.81 per barrel on April 21, 2020, during the global pandemic-induced downturn. Its highest recorded price was $149.66 per barrel in July 2008.

Azerbaijan’s oil production is primarily based on the Azeri-Chirag-Gunashli (ACG) offshore field development agreement. The State Oil Company of Azerbaijan Republic (SOCAR) holds a 31.65% stake in the contract.

By Sabina Mammadli