Azerbaijan will see a significant increase in oil revenues, Parmar Ajay, Senior Analyst covering oil and refined products price forecasting at Independent Commodity Intelligence Services (ICIS) told Report, commenting on a recent increase in oil prices.
“Azerbaijan produces ~720,000 bbl/day of crude. Since it is a net exporter of crude oil, with prices spiking as much as they have, they [Azerbaijan] will see a significant increase in oil revenues,” he said.
He also noted that some Azerbaijani oil is mixed with Russian Urals crude oil, which is then exported via Russia: “If sanctions are placed on Russian oil exports, Azerbaijan may no longer be able to continue this practice, however the impact on Azerbaijan is likely to be minimal as these blending volumes are small.”
As for the overall oil prices he noted that this happened due to the situation in Ukraine.
“The impact of this price spike will be higher gasoline and petrol prices for every day consumers. Refineries are struggling to raise run rates due to high operating costs at present, which means refined products prices are expected to remain higher for longer,” he said, adding that oil prices are expected to continue to rise during the course of this month, as the US has recently announced it is considering directly sanctioning Russian energy exports.
Meanwhile, the countries which will benefit from this will be the major net oil exporters: Saudi Arabia, Iraq, UAE, Nigeria, Canada etc, he said. While, the countries which would suffer the most are the major net oil importers: China, most European nations, India, Japan.