The price of Brent crude oil on Monday fell below $ 50 a barrel. Such values of the oil are observed for the first time since January.
The cost of the September Brent crude oil futures on the London ICE Futures Exchange fell to $ 49.95. That is, in one day the price of oil fell by more than $ 2.5.
In parallel the price of WTI crude oil decreases on the New York Mercantile Exchange. Losing almost $ 2 a day, oil futures for September delivery were traded at $ 45.39 a barrel.
The fall in prices is due to oversupply in the world market, as well as information about the slowdown in China's economy.
The fall in prices is a blow on the Russian currency, which depreciates against the dollar and the euro.
The Azerbaijani manat is also weakening, but not so much. The price of oil Azeri-Light is around $ 51. -02D-
Economics
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Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
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Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
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Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
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In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
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