The price of Azerbaijan’s flagship crude oil, Azeri Light, declined sharply on June 16 across major export destinations, reflecting broader downward trends in the global oil market.
According to industry sources, the cost of Azeri Light crude on a CIF (Cost, Insurance, and Freight) basis at Italy’s Port of Augusta dropped by $1.85, or 2.38 percent, settling at $75.79 per barrel.
Similarly, the price on an FOB (Free on Board) basis at Turkey’s Ceyhan port fell by $1.93, marking a 2.53 percent decrease, with barrels now trading at $74.46.
Other key global crude benchmarks also experienced declines. Russia’s URALS crude saw a significant drop of $1.98 or 3.19 percent, bringing its price down to $60.01 per barrel. Meanwhile, the Dated Brent crude benchmark from the North Sea recorded a $1.56 decrease, a 2.07 percent fall, settling at $73.63 per barrel.
Despite current market volatility, the Azerbaijani government has estimated the average oil price for its 2025 state budget at $70 per barrel. The recent price drops place actual market rates slightly above this projected threshold, though continued fluctuations could influence fiscal planning.
The decreases across benchmarks are attributed to a mix of factors including shifting global demand, inventory data, and geopolitical developments. Market analysts continue to monitor the situation closely as oil-producing nations assess potential adjustments in output to stabilize prices.
