Baku, Azerbaijan, Feb. 1
By Maksim Tsurkov - Trend:
Falling oil prices cannot last for long, Azerbaijani Minister of Energy Natig Aliyev told reporters Feb. 1.
He said that the current low oil prices are caused by economic reasons rather than political.
"The oil price cannot remain at the current level for long, because today these prices are caused not by economic, but political reasons, and Azerbaijani President Ilham Aliyev also noted this fact," Aliyev said. "This harms not only oil exporters but also importers. These political games must end, and only economy can dictate which prices for oil and energy in general should be. This price should be acceptable for both importers and exporters."
The minister went on to add that it is important in the current situation that all oil-exporting countries unite together and discuss the processes taking place in the world and their impact on the global economy.
"Today it is necessary that both the OPEC countries and countries outside the organization come together to some sort of agreement," he said. "One needs to understand what the optimal price for oil on world markets is. OPEC countries have repeatedly discussed this, and noted at the time that the optimal price for oil is $70-$80 per barrel for both exporters and importers."
Aliyev went on to add that the situation with prices will change maximum before late 2016.
"It's difficult to make any specific predictions," the minister said. "In order to make any forecast, it is necessary to analyze more than 20 factors. At one time, when in 1998 the prices of oil fell to $10 a barrel, all the experts said that this situation would last at least until 2002. But after 1999 the prices of oil began to rise, and even passed the barrier of $100."
"Therefore, it is hard to make predictions, and special institutions and agencies should deal with this," he said. "But I believe that major changes should take place this year, because no global economy can stand the current situation. Both states and governments, as well as politicians and economists see this."
Follow the author on Twitter: @MaksimTsurkov