The cost of futures for Brent crude oil for February delivery fell below $31 a barrel. Oil prices started to decline after the opening of trading on the stock exchanges in China, and soon Brent dropped to $31.09. At 9:30 oil cost $30.73. Falling prices have a direct and negative impact on the economies of oil-producing countries, including Azerbaijan. Falling prices mean that manat will continue to weaken and the creeping devaluation will continue.
In Azerbaijan since Saturday actually stopped selling the dollar and euro, while the price on the black market continues to grow. After the devaluation on 21 December manat has fallen in price in ratio to the American and European currencies by 80 - 100%.
The price of oil in the state budget of Azerbaijan is around $50 dollars. -02D-
Economics
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Azerbaijan's financial standing continues to strengthen as the country's foreign currency reserves have surged to $71 billion as of January 1, 2025, according to the Ministry of Finance. This figure, which includes reserves held by the State Oil Fund of Azerbaijan (SOFAZ) and the Central Bank of Azerbaijan (CBA), far exceeds the nation's external debt, which stands at a fraction of its reserves, specifically nearly 14 times less. This robust reserve position reflects Azerbaijan's fiscal stability and the government’s strategic economic management.
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According to operational data from the Ministry of Energy of Azerbaijan, in January 2025, the country produced 2.3 million tons of oil, including condensate, and 3.9 billion cubic meters of gas.
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The State Oil Company of Azerbaijan (SOCAR) has opened a representative office in Albania and is set to launch a specific project this year, the Albanian company "Albgaz" announced.
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"Azerbaijan is currently among 54 middle-income countries," said Shahmar Movsumov, head of the Economic Affairs and Innovative Development Policy Department of the Presidential Administration, during the presentation of the World Bank’s World Development Report 2024 in Baku on February 10.
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