Oil Prices Beat Record

Oil&Gas Materials 27 October 2007 14:24
Oil Prices Beat Record

Azerbaijan, Baku / corr Trend V.Sharifov / On 26 October AZERI LT CIF Augusta oil price beat a record comprising $89.21 per barrel amid general increase of world oil prices resulted from toughening of US sanctions towards Iran, threats around the US oil reserves and tense relations between Turkey and Iraq.

The State Oil Company of Azerbaijan (SOCAR), which produces light oil since 1997, said on 27 October oil prices jumped up by $2.66 per barrel on 26 October as compared previous day.

Azeri Light oil is produced from Azeri-Chirag-Gunashli offshore fields, which is developed under BP's operations. It is directly delivered to the Turkish port of Ceyhan via the Baku-Tbilisi-Ceyhan main export oil pipeline, to the Georgian port of Supsa via the Baku-Supsa pipeline and to the Georgian port of Batumi by railway.

On 26 October AZERI LT FOB Ceyhan oil price also beat a record at $87.86 per barrel, or $2.66 per barrel up as compared to previous price.

Azerbaijan exports URAL oil from the Novorossiysk port, which is delivered via the Baku-Novorossiysk pipeline. The high quality Azerbaijani oil, including Azeri Light, is blended with other oil brands in the Russian pipeline system and is sold from the Novorossiysk Port as URAL.

The price of URAL (EX-NOVO) was $83.64 per barrel, or $2.49 per barrel down compared to the previous price.

The same situation was observed with price of Brent Dated produced the North Sea. Its price was $87.84 per barrel, $2.66 per barrel less compared to the previous price.

The analysts hold different opposition on hike in oil prices up to $100 per barrel. Konstantin Batunin, an Alfa Bank expert on oil and gas, said that oil prices will reach $100 per barrel or even $200. "The matter is that when it will occur," Batunin said. By the end of the year oil will hardly attain $100 per barrel.

Artem Konchan, an analyst of ATON Broker, said that for the time being there is not any terms which could condition drop in oil prices. The oil will remain expensive, whereas it will not the point at $100 per barrel [this year]," he stressed.

Meanwhile, Azer Mursaliyev, a political expert and the deputy editor-in-chief of the Russian daily Kommersant, said that rise in the oil prices to $100 per barrel by the end of the year is fully possible in the current situation.

According to Batunin, the existing high oil prices will hardly damage the world economy. "There is a point and increase of it is a threat to the world economy. However, macroeconomic indices in the United States and other countries testify that the world economy is into condition to assimilate the existing prices," the analyst said.