The Finance Ministry of Azerbaijan specified the forecast oil price for 2006 at the level of $40 per barrel, the Minister of Finance Avaz Alekperov told journalists on 2 September, Trend reports. According to him, the government approached seriously to the problem of determining the forecast price and the figure of $40 for barrel is real.
The increase of the projected index is risky and may lead, in case of dropping the prices, to the necessity of bringing in amendments to the budget. Alekperov also noted, that according to the international forecasts the world oil prices for 2006 will not fall lower of the benchmark of $53 per barrel.
It should be noted, that in early August the Ministry of Economic Development proposed to set oil prices at the level of $40 for settlement of the budget items. According to the initial version of the 2006 budget forecast the oil price supposed to be at the level, similar to the budget forecast for 2005 - $ 25 for barrel.
Tendency for increase of the budget forecasts for oil prices is going on for several years, in particular, in 2003 the index was $19,5 per barrel, in 2004 - $22 per barrel, in 2005 - $25 for barrel.
With all these, even the forecast figure at $40 per barrel is practically 1,7 times lower of the real oil price figures. The price for AZERI LT CIF on 1 September was $68,37/barrel (grew for $0,20/barrel as compared to the previous price). The price for URAL (EX-NOVO) on1 September was $60,50/barrel (grew for $0,15/barrel).