Why the "Azeri Light" prices increase? Ilham Shaban explained

Economy 13:30 21.02.2024

Despite the economic inflation and wars happening in the world, the price of Azerbaijani oil is increasing. Although the largest oil producers have restricted oil exports, the oil of these countries has not gained in value.

What is the reason for the continuous increase in oil prices in Azerbaijan?

The outbreak of wars in economically important regions such as Eastern Europe and the Middle East has made world countries face the problem of oil supply. The oil restrictions imposed by the Arab states and Russia's removal from the game as an energy exporter have made Azerbaijan the most attractive energy alternative.

The increasing demand affects the price of Baku oil. After 2015, there was no significant increase in prices. That year, Baku oil rose by 11 percent and created an imbalance in the foreign market.
If the political situation continues like this, the price of Azerbaijani oil will continue. Another reason for this is that the energy industry strategy of the country is based on exporting more oil.

Speaking to Ednews about this, the head of the Oil Research Center Ilham Shaban called it an advantage that the value of Azerbaijani oil is not determined on the world exchange.

"The price of Azerbaijani oil is not determined on world exchanges. Therefore, the price is determined according to the price of brent oil and the demand and supply on the day at which terminal the oil is released to the market. When there is more demand, then the price is higher.

If we are able to export oil at 86-87 dollars these days, it is because the price of the Brent brand has been steadily increasing since February. Due to tensions in the Red Sea, demand is expected to increase further. Baku oil is used because the Hamas-Israel conflict also hinders the production and export of oil in the Middle East."

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