The main reason for the decline in oil prices in the global market is the reduction of tensions in the Middle East.

Axar.az reports that economist Natig Jafarli stated this while discussing global oil prices in an interview.

The expert noted that certain steps have recently been taken to reduce tensions in the Middle East:

“At least there are statements suggesting that the Israel-Iran conflict will not escalate further or might even come to a complete halt, which has contributed to the drop in oil prices. Overall, oil production worldwide has not decreased. For example, the United States has a daily oil production of 13.5 million barrels, which is a record, and the U.S. has risen to lead the world in oil production. Previously, Russia and Saudi Arabia were the leaders in this area.”

Discussing the impact of falling oil prices on Azerbaijan, the economist stated that it is difficult to assess the effects of daily price changes on the country:

“The main issue is the average monthly, quarterly, and annual prices. So far this year, the average price remains comfortable enough for Azerbaijan, as it is higher than the amount projected in the budget.

However, for 2025, the parliament has conservatively set the budgeted oil price at $75. This could pose a serious problem, as the likelihood of oil prices falling below $75 next year is very high. This is a dangerous situation that needs to be addressed.”

It is noted that currently, a barrel of Brent crude oil is priced at $72.8.