Azerbaijani finance ministry: Possible fluctuations in oil prices are no threat to executing 2013 state budget
Azerbaijan, Baku, Oct. 29 / Trend A. Akhundov /
The Azerbaijani Finance Ministry sees no threat to executing the state budget forecasts for 2013 in connection with possible fluctuations in the oil price on the world markets, Azerbaijani Finance Minister Samir Sharifov told media today.
While forming the state budget forecasts for 2013, the oil price was fixed at a level of $100 per barrel. The Azerbaijani state budget is expected to be formed by 79 per cent coming through direct payments of the oil sector in 2013. The share of the oil sector in the GDP next year is projected to hit 38.6 per cent.
"Of course we anticipate fluctuations in oil prices, but see no reason to worry," the minister said.
According to the situation on the world markets, the oil price as a result of adjustments to the forecast for 2012 was increased from $80 to $100. The Economic Development Ministry originally fixed the oil price at $80 within the macroeconomic forecasts for the next year.
However the price on Azeri Light crude oil produced at the Azeri-Chirag-Guneshli block of fields exceeds $100 a barrel.
In this regard, a decision was made to form the state budget forecasts and macroeconomic forecasts based on oil prices worth $100.
On Oct.22-26, the average price on AZERI LT, exported from Azerbaijan via the Ceyhan, Batumi and Supsa ports to the Italian Augusta port, was $110.49 per barrel or $4.66 per barrel less than the previous week.
The maximum price for AZERI LT was $111.85 per barrel. The minimum price was $109.7. Azeri Light's density is 34.6 degrees API with a 0.14-per cent sulphur content.
The average price on Urals (Ex-Novo) exported from Azerbaijan via the Novorossiysk port was $106.19 per barrel, or $5.14 less than the previous week.
The maximum price for Urals was $107.6 per barrel and the minimum, $105.44.
Urals' density is 32 degrees API with a sulphur content of up to 1.3 per cent. The oil grade's specifications vary when sold depending on its high or low quality content.
The average price on Brent Dated was $108.13 per barrel or $5.27 less than the previous week.
The maximum price was $109.47 per barrel and the minimum - $107.32.
Brent Dated's density is 38.3 degrees API with a sulfur content of 0.36 percent.