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Oil prices and dynamics of monetary market of Azerbaijan (13.12- 17.12.2010)

Analysis Materials 21 December 2010 11:02 (UTC +04:00)

On Dec. 13-17, the average price on Azeri Light CIF Augusta exported from Azerbaijan via the Ceyhan, Batumi and Supsa ports was about $93.81 per barrel, or $1 more than the previous price.

The maximum price was $94.28 per barrel. The minimum price was $93.39 per barrel on Dec. 13-17.

Azeri Light's density is 34.6 degrees API with a 0.14-percent sulfur content.

The average price on Urals (Ex-Novo) exported from Azerbaijan via the Novorossiysk port was over $87.3 per barrel, or about $0.34 more than the previous price.

The maximum price was $87.84 per barrel and the minimum - $86.69 per barrel Dec. 13-17.

Urals' density is 32 degrees API with a sulfur content up to 1.3 percent. The oil grade's specifications vary when sold depending on its high/low-quality content.

The average price on Brent Dated was over $91.1 per barrel, or $0.76 more than the previous price.

The maximum price was $91.53 per barrel and the minimum - $90.52 per barrel.

Brent Dated's density is 38.3 degrees API with a sulfur content of 0.36 percent.

Monetary market

Last week the official rate of the manat to the US dollar, set by the Central Bank of Azerbaijan, consolidated by 0.0004 points or 0.04 percent. The average rate was established at 0.79878 manat to 1 U.S. dollar.

The maximum rate of the US dollar compared to manat was established on Dec. 13 (0.7991 manat to 1 U.S. dollar) and minimum was established on Dec. 14-17 at 0.7987 manat to 1 U.S. dollar. 

As a result of last week's exchange rate of the Azerbaijani manat to the U.S. dollar, established based on results from the Baku Inter-bank Currency Exchange (BICEX) consolidated by 0.0004 points or 0.04 percent and was 0.79902 to $1.

Deals concluded last week at BEST with transition to currency (T+0) comprised: Dec.13- $1.48 million with exchange rate of 0.7991 AZN/USD, Dec.14 - $0.82 million with exchange rate of 0.7991 AZN/USD, Dec.15- $1.63 million with exchange rate of 0. 7991 AZN/USD, Dec.16 - no deals were concluded , so exchange remained at 0.7991 AZN/USD, and Dec.17 - $3.48 million with exchange rate of 0. 7987 AZN/USD.

No deal was concluded with USD/AZN T+1 and T+2 due to too few appeals by dealers. Appeals were not received on RUB/AZN and EUR/AZN.

Prices for privatization shares

Last week, the price on privatization vouchers decreased and purchases was running for three manat and sales for four manat. President Ilham Aliyev's decree on additional measures to ensure the use of state privatization vouchers prolonged the validity period until Jan. 1, 2011. This decision was made as roughly 80 percent of the vouchers were still in circulation.

The maturity period has been extended several times to ensure the greater use of the vouchers (until Jan. 1, 2002, July 1, 2004, and Jan. 1, 2008, and the last time on Dec. 31).

The privatization shares (one share is four vouchers) were issued in Azerbaijan in January 1996 in two phases. The population received 31.9 million privatization vouchers. In accordance with Azerbaijani legislation, every citizen born before Jan. 1, 2007 received four vouchers for free.

Nearly 25.5 million vouchers, representing 80 percent of the vouchers in circulation, have been written off during the period of privatization.

The Azerbaijani State Committee for Property Issues identified new mechanisms to ensure participation in the privatization process after the voucher validity period expires on Dec. 31. These changes include the preferential sale of shares in joint stock companies and specialized voucher auctions, as well as the privatization of small enterprises.

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