AZE.US
The price of Azerbaijan’s Azeri Light crude fell to $120.68 per barrel on Oct. 7 but remained nearly twice the oil-price assumption used in the country’s 2026 state budget.
The CIF price at Italy’s Augusta port declined by $3.93, or 3.15%, from the previous quotation of $124.61 per barrel, according to oil-market data reported by Report. The Oct. 6 quotation had risen by 60 cents to $124.61.
At $120.68, Azeri Light was $55.68 above the $65-per-barrel benchmark in Azerbaijan’s 2026 state budget. That is a premium of about 85.7%, meaning the market price was roughly 1.86 times the budget assumption.
Brent crude futures for December delivery settled at $123.91 per barrel. At Türkiye’s Ceyhan port, Azeri Light on a free-on-board basis fell $3.93, or 3.45%, to $109.88 per barrel.
What the Price Gap Means for Azerbaijan
Oil prices well above the budget benchmark can strengthen export earnings and reduce the risk of a shortfall in projected petroleum revenue. The eventual impact on public finances, however, also depends on production and export volumes, tax payments by oil companies and transfers from the State Oil Fund of Azerbaijan.
The large cushion above $65 gives the budget room to absorb a market correction, but daily quotations remain volatile. Azeri Light traded at $124.76 on Oct. 2 and $124.01 on Oct. 3 before reaching $124.61 on Oct. 6.
Azeri Light is produced from the Azeri-Chirag-Gunashli field complex. State oil company SOCAR holds a 35.3% interest in the development agreement.
Source: Vesti Baku.
AZE.US