SOCAR reacts to falling energy prices by cutting oil export

SOCAR reacts to falling energy prices by cutting oil export

State Oil Company of Azerbaijan (SOCAR) reduced export of petroleum products in November 2014 by 41.5% compared to the previous month. According to the SOCAR, overall export of Azeri oil products totaled 77,851 tons in November versus 133,067 tons in October, 183,931 tons in September, 280,705 tons in July (the best level for 2014) and 21,983 tons in April (the worst monthly index).

This November the export of oil products included 60,477 tons of diesel fuel and 17,255 tons of jet fuel and 119 tons of black oil. “In 2014 export of oil products makes up so far 1.43 million tons, including 9,332 tons of petrol, 886,520 tons of diesel fuel, 176,110 tons of jet fuel, 358,772 tons of gasoil and 537 tons of black oil,” SOCAR reported.

In 2013 export of oil products amounted to 1.046 million tons, including 14,250 tons of motor fuel, 899,905 of diesel fuel, 131,322 tons of jet fuel, and 657 tons of furnace fuel. The export peak accounted for April (113,405 tons). Over 2012 export totaled 1.2 million tons, including 113,027 tons of vacuum gas oil, 921,570 tons of diesel fuel, 60,142 tons of motor petrol, 145,980 tons of jet fuel, and 3,023 tons of black oil. The best export index was recorded in December – 138,144 tons.
Meanwhile the cost of a barrel of oil BTC FOB Ceyhan exceeded cost of a barrel of Brent by $0.8 versus $2.1 in October, $0.99 in September, $2.11 in April (maximum in 2014) and $0.5 (historic minimum) in January 2014. Last year the best price difference ($2.97) was registered in September and March.

The previous historic minimum was registered in October 2012 ($0.97) and the best index for 2012 – in May ($2.35). The absolute record was recorded in August 2011 ($3.22). In 2010, the peak was achieved in December ($1.51), but then it ceded much to the record difference ($1.97) registered in July 2008 against the backdrop of record high oil prices. “The cost of a barrel of BTC FOB Ceyhan in November 2014 was $79.7 against $89.51 in October and $113.21 (the best level for this year) in June. At that, the cost of Russian oil mixture Urals (REBCO) was $78.92 per a barrel against $86.63 and $109.44 respectively and the grade Brent $78.9 against $87.41 and $111.65 per a barrel,” the SOCAR says.

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