How Will Oil Price Impact on Azeri State Budget?

How Will Oil Price Impact on Azeri State Budget?

Cheapening of oil price in world markets does not create a threat for state budget of Azerbaijan, Deputy Finance Minister Azer Bayramov said. To him, base price of oil in the budget (100 dollar/barrel) is average annual price. ‘At present, average annual price of oil is not lower from the level considered in the budget’, he said, APA reports.

Note that, as of the beginning of 2012, price of Azeri Light was equal to $115-120 per barrel, while now, this figure is lower than $100. The main reasons of cheapening of oil price in world markets are – increase of strategic oil reserves in the U.S., decline in need for oil in China, increase of oil output by OPEC organization. It is difficult to know how long these factors will affect the oil market. That is why, nobody sounds decisive opinions on the process of cheapening.

 

 

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