Last Thursday absolutely maximum price of oil was fixed at the New York Commodity Exchange. After the close down of trading sessions the price of oil exceeded $0.90 per barel. The record price was $90.02 per barrel.
According to analysts, increase of oil prices was related to high demand for oil products at the US market. Moreover, weakening of the USD at the world currency markets, as well as tension in the Iraqi-Turkish border also played an important role in price hike. The Turkish Parliament approved a plan on armed operations in the north of Iraq, posing threas for plans of oil deivery from the region to the world market.
The experts expect further increase in the oil prices, which wil comprise approximately $3-4, whilst OPEC representatives regarded $100 per barrel as a real price.
Moreover, the threats of participants in the market in connection with the possible deficit in oil and oil products laso played considerable.
Rise in world oil prices promoted rise in Azerbaijani CIF Augusta light oil to historic maximum at $85.29 per barrel, or $0.86 per barrel more than the previous price.
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. By the end of the last year oil was exported to the Georgian of Supsa via the Baku-Supsa pipeline. Since NIvember the pipeline has been under repair.
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. This oil yields the Azerbaijani oil both in terms of quality and price.
On 17 October the price of URAL (EX-NOVO) delivered trom the Novorossiyk Port was $80.54 per barrel, or $0.46 per barrel down compared to the previous price.
On the one hand risein world oil prices favor Azerbaijanis from the aspect of high oil revenues to the country with further use for the favor of the counry and for future generations. On the other hand, such dependence on world prices is actually alarming. However, the patriots of the counry's economic stability should be calmed - the forecasts confirm on high oil prices for longer period.