SOCAR SUPPOSES, WORLD OIL PRICES IN 2006 WILL NOT BE LOWER OF $45-50 PER BARREL
The State Oil Company of Azerbaijan (SOCAR) forecasts, the world oil price will not drop below $45-50 for barrel in 2006, SOCAR told Trend. In 2006 the government plans the record figure of the forecast budget oil at $35 for barrel.
According to SOCAR, increase of the budget oil price will, undoubtedly, entail its various expenditures, which in turn, will lead to the inflation growth in the country.
The tendency for growing of budget forecasts for oil is going on for some years, particularly, in 2003 the figure was $19,5 per barrel, in 2004 - $22, in 2005 РіРѕРґСѓ - $25 for barrel.
There is a proposal to set the forecast at the level of $40, the Cabinet of Ministers told Trend. However, for additional guarantees of the budget sustainability it is undesirable to accept it.
The price for AZERI LT CIF on 18 August was $62,44/barrel, URAL (EX-NOVO) - $55,31/barrel, Brent (DTD) - $61,75/barrel.