Oil and gas prices to remain volatile - S&P Global Ratings

Oil&Gas Materials 29 January 2021 15:48 (UTC +04:00)

BAKU, Azerbaijan, Jan.29

By Fidan Babayeva – Trend:

The S&P Global Ratings international rating agency expects preservation of volatility in oil and gas prices, Trend reports citing the S&P Global Ratings’ report.

The S&P analysts noted that the global energy transition to renewable energy sources, the growing attention to environmental, social, and governance (ESG) factors, and the tightening of related policies in many countries are increasing the risks for the oil and gas exploration and production sector, related to product substitution and development trends.

The main share of SOCAR's business is related to the exploration, production, and processing of oil and gas, which determines the company's exposure to risks associated with global structural changes in relation to fossil fuels, the analysts said.

The S&P assessment reflects, on the one hand, an increase in industry volatility, and on the other, a decrease in risks due to the conclusion of a ceasefire agreement and the S&P expectations that SOCAR will maintain manageable liquidity indicators and fairly high rates of coverage of interest payments, the report noted.

Earlier, in its basic version, the S&P Global Ratings international rating agency noted that the liquidity of the State Oil Company of Azerbaijan (SOCAR) will remain manageable, and its internal operations and exports will continue without interruption. The government's willingness and ability to provide emergency and ongoing support to SOCAR will remain strong.


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