Over the past 20 years, only in 2020 was the average annual price of oil $42 per barrel. In other words, it has not fallen below that level. Whenever oil prices drop for a short period, both citizens and business representatives immediately become concerned. During a given year, the price of oil could fall to zero or rise to $200. What matters to us is the average annual price.

Axar.az reports that Chairman of the Central Bank of Azerbaijan (CBA) Taleh Kazimov said this in an interview with Azerbaijan State Television and АPA.

The CBA chairman added that even if the average annual oil price were $45 per barrel, Azerbaijan's current account balance would remain in surplus, taking into account current production levels:

“The average annual oil price currently set in the state budget is $65. Our calculations show that a $10 change in the oil price affects the consolidated budget by 1.4 billion manats.

For Azerbaijan's current budget size, this is not a large figure. In other words, by reducing some expenditures or postponing certain investment and capital spending projects until the following year, we can easily offset any potential negative impacts. We do not see any major problem arising from a decline in oil prices, either in the current account balance or in the budget.”