Baku. 6 January. REPORT.AZ/ Increased oil production in non-OPEC countries have upward pressure on the current supply of raw materials on the world market against the background of the observed decline in demand. This process causes a further decline in oil prices in the world market.
Report was told by the expert economist, former Deputy Minister of Economy, Oktay Haghverdiyev:
Judging by the fact that Russia and Iraq are increasing oil production, the price of oil will fall further - the demand will be less than the supply.Russia is doing so to compensate falling prices. Although this will not help, because the price will continue to fall, as evidenced by evaluation of the international expert organizations.
According to the economist, at the moment it is difficult to make any specific predictions on the oil price. Only at the end of the first quarter it will be possible to give a precise forecast.
O. Haghverdiyev noted that Azerbaijan has various options to overcome the crisis in case of preservation of low oil prices.
In 2009, we did not fulfill the state budget of 1.5 bln manats, and in spite of this, there were no crises in Azerbaijan.
The government simply changed the structure of costs and reduced investment costs by doing all the basic financial obligations, he said, recalling that then the price of oil dropped to 37 dollars / barrel.