SOFAZ: Average export price of Azerbaijani oil not to drop below $100 this year

Despite continuing reduction of oil prices, the State Oil Fund of Azerbaijan (SOFAZ) does not expect deficit of its own budget.

“In 2014 the SOFAZ budget was based on the forecast price of $100 per barrel. Considering that average cost of 1 barrel of oil was $105.6 between January and November this year, then despite the oil price in the coming months, SOFAZ’s budget does not expected to have deficit,” said a source from SOFAZ.

Therefore, SOFAZ told Trend agency that SOFAZ will fully honor its commitments to the state budget of the country.

Speaking about approval of the state budget of Azerbaijan for fiscal year 2015 with the oil price of $90.00 per barrel, SOFAZ said that oil price in the state budget is based on the macro-economic forecasts of the Ministry of Economy and Industry. While drafting the budget SOFAZ uses the oil price stipulated by the state budget.

The oil price reduction is caused by increase in the volume of oil export to the world market by the US since spring 2014. US and Europe have also lifted international sanctions on export of energy resources by Iran. The oil price reduction has especially accelerated in summer and continues now.

Speaking about Azerbaijani oil price, last week (November 21-28) average price of AZERI Lt oil, which Azerbaijan sells through the Turkish port Ceyhan and Georgian Batumi and Supsa on the basis CIF (in the recipient’s port) in the Italian Augusta port, totaled almost $78.10 per barrel, which is down $2.2 against previous week. Last week maximum price of AZERI LT was $84.12 per barrel, while minimum one - $73.36 per barrel.

By October 1, 2014 SOFAZ’s assets increased by 3.98% against early 2014 ($35,877,500) and totaled $37,305,303.—0--