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Oil price in 2015 state budget makes $90

14 October 2014 11:45 (UTC +04:00)

Baku - APA-Economics. The oil price in the state budget makes $0 a barrel, exchange rate of manat is AZN 0.784, APA reports quoting website of the Finance Ministry.

Decline of oil price by 10% compared to 2014 is related to oil price fall in the world market.

One of the factors influencing oil price fall is increase of US hydrocarbon reserves by 29% (11.5 barrels per day) and decline of oil import to the country by 71% since early 2014. The US stopped natural gas import last year and tries to decline oil import too.

Along with this, low economic growth in EU countries caused decline of demand for oil. In these cases, the target directing to increase of energy resources export are Eastern Asian countries. However, economic growth rate in these countries weakened too and this is one of the factors which influence oil price fall. At the same time, geopolitical instability in the Middle East and other oil producing countries (Gaza, ISIL, conflicts in Lebanon, war in Syria and etc.), as well as sanctions against Iran are one of these factors.

However, gradually stabilization of these processes will influence oil price fall. Of course, non-stable geopolitical processes, sanctions can influence Azerbaijan’s foreign economic relations.

Ukraine crisis and sanctions against Russia have impact on CIS countries, especially Belarus and Kazakhstan.