Oil price to remain at low level for a long time


April 3, Fineko/abc.az. Azerbaijan’s economy is likely to switch to a new balance with the beginning of a period of global shocks, pandemics and low oil prices.

Such a statement was made for ABC.AZ by Vusal Gasimli, the executive director of the Center for Analysis of Economic Reforms & Communications.

He noted that last year there was a surplus of $4.4 bn on the current account, and $100 million on the balance of capital and finance, as well as an increase in reserve assets by $5.1 billion in terms of the average oil price at $64 per barrel.

According to Gasimli, oil prices, which have fallen by 60% this year, under the influence of a sharp decline in demand, the struggle for markets and full warehouses, will remain at the low level for a long time: "In addition, we should take into account the annual decline in oil production in Azerbaijan and the increase in prime cost. In such circumstances, the main source of ensuring sustainable development and balance of payments, which is considered the "mirror" of the economy, is an increase in investments."

By Elmir Murad