Oil prices fell below Azerbaijan’s budget forecast: what next?
Baku, Fineko/abc.az. No sooner had the Parliament of Azerbaijan approved the expansion of State Budget 2012 and agreed to the increase in the oil export price forecast, as oil prices fell below an updated budget forecast.
Yesterday oil Brent price, the base for calculating the cost of Azeri oil, fell by $3.44 to $98.43 per barrel, while WTI crude oil by $3.30 to $83.23.
It is known that Azerbaijan, expanding State Budget, increased the forecast of the average export price of oil from $80 up to $100 per barrel. Since yesterday crude oil has been traded below this forecast. Moreover, the decline may be even deeper. Already yesterday in London at some point the price of oil fell below $98 per barrel to $97.9 (- $3.97) for the first time since February 2011. Analysts expect a general decline in world prices to $80.
At that, the Government of Azerbaijan does not see any problems from this for budget 2012.
"Almost for half-year Azeri oil was traded around the mark of $120 per barrel, and decline of the price even to $80 a barrel will not lower the average price of Azeri oil in 2012 below $100," one of the government experts stated to Fineko earlier.
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