The decrease in the world market price of oil continues. Brent oil is offered at the lowest price in 2024. Currently, the price of 1 barrel of oil is 76 dollars. The world market price of oil is important from the point of view of the volume of currency entering Azerbaijan. About 80 percent of Azerbaijan’s exports are oil and oil products.
What is the reason for the turmoil in the oil market? How will the process proceed?
Publika.az-a related to this Ilham Shaban, an expert in the field of oil, the head of the Oil Research Center, said that the price of oil fell below 77 dollars for the first time since June 3.
He added that there are two main reasons for this:
“The first is weaker economic indicators in China. Second, economic indicators in North America and Europe are lower than forecast indicators. In other words, industrial products are produced less. It does not require as much energy as previously thought. Overall, there is an abundance of oil in the market. There is enough crude oil on the market, which leads to lower prices during the summer. One issue should not be forgotten that the weather plays its role here. It’s summer all over the Northern Hemisphere. But we see how cool the month of July is in Azerbaijan.
Previously, the air conditioner worked 25 days out of 30 in July, but now it works 10 days. This, of course, means a decrease in energy demand. On the other hand, every year more green energy sources are put into use. The need for traditional energy is not at the same level as before. Therefore, the report of the International Energy Agency shows that after 2030, the global demand for excess oil will decrease. That is, it is possible that oil consumption will reach its peak in 2029.”
Aysel Shahmar
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