SOCAR President: “OIL price fall in the world market does not concern Azerbaijan”

SOCAR President: “OIL price fall in the world market does not concern Azerbaijan”
# 12 December 2008 10:30 (UTC +04:00)
Baku. Elbrus Seyfullayev–APA. Oil price fall in the world market will not create any budget problem in Azerbaijan, said SOCAR President Rovnag Abdullayev, APA reports. Abdullayev said oil price was defined in the budget 2009 as 70 USD per barrel and added that present price 40 USD p/b did not create any concern. “We consider 70 USD for the next year budget. The present oil price, which is lower than this figure, doesn’t mean that it will be so next year. The oil price can be changed before the next year. So it doesn’t concern us”.

Speaking about the prognosis of possible oil price fall to 25 USD, Abdullayev said exact prognosis on the prices was impossible. “No one can say exactly how the oil price will change. Recently there was prognosis that the oil price will be increase up to 300 USD, but oil price fall to 25 USD doesn’t seem real. Our experts defined the oil price in the next year budget as 70 USD p/b. For present realities, 70-80 USD is normal price per barrel. We consider that the prices will be around 60-70 USD next year. The prices lower than 70 USD are not profitable in view of present market prices. Non-profitability prevents producers to make big investments, which leads to reduce of production”.

Speaking about the reducing of production in Azerbaijan, the SOCAR President said Azerbaijan was not such large oil producer that can influence on the prices. “The question is about Russia and OPEC countries. OPEC will gather for a meeting in the next few days to make clear some issues. Oil price slashing can create lack of oil output in the world, which will be costly for the world economy”.
#
#

THE OPERATION IS BEING PERFORMED