BAKU, Azerbaijan, March 4
By Sadraddin Aghjayev – Trend:
The rise in oil prices is an additional opportunity for Azerbaijan to direct the excess profits to economic recovery in the post- Karabakh war period, as well as to develop sustainable energy, Deputy Director of the International Institute of Energy Policy and Diplomacy of the MGIMO University Igbal Guliyev told Trend.
According to him, OPEC+ did not begin to increase the production beyond earlier fixed volumes, which would support oil prices around $100 per barrel in the near future.
“OPEC+ does not address the factors regarding the current geopolitical situation, given medium-term plans. This point does not have a fundamental impact on the global market, but it pulls prices up to the eight-year high. This may devalue Western sanctions against Russia, since Russia's revenues are also growing along with high prices on oil,” Guliyev said.
According to the expert, the OPEC+ countries will experience extra pressure not only from the US, but also from other Western countries.
"The decision of the alliance to boost the oil output in April by 400,000 barrels per day according to the previous schedule was expected. Growth in Russia's revenues poses a challenge for Western countries. They will have to think about increasing the release of oil from the strategic reserve. The introduction of additional restrictive measures by the West against Russia's oil and gas sector may force the market panic, which in turn will affect prices upward," he added.
The price of Azeri LT CIF Augusta, produced at the Azeri-Chirag-Deepwater Gunashli (ACG) field, grew by $2.6 on Mar. 3 compared to the previous price, settling at $118.7 per barrel, while Azeri LT increased by $2.12, up to $116.14 per barrel.
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