”The proposed amendments to the budget were expected to reduce the price of a barrel of oil,” Vugar Bayramov, member of Parliamentary Committee on Economic Policy, Industry and Entrepreneurship told APA.
According to him, due to the pandemic, volatility in the oil market is high:
“This leads to drop in world oil prices. Last month, the average oil price on the world market was $ 30. Although oil prices are currently above $ 40 for a barrel, a second wave of the coronavirus in the fall may lead to a drop in oil prices. Therefore, $ 35 suggested in the draft law is more conservative and less risky price. I consider that calculating adjusted budget over $ 35 is a right step. It allows taking into account the volatility in the oil market, at the same time potential effects of pandemic. The change has been adapted with the volatility in the global economy and the market for strategic products.”
Note that the budget has set the price of oil at $ 55 per barrel.