Azeri Light crude sinks to $37

Azeri LT CIF crude oil, exported from Azerbaijan to the world markets, decreased by $ 1.61 (-4.1%), settling at $ 37.65 per barrel, Report says.

Report informs referring to Financial Times, oil prices slumped on Thursday to the lowest level since May as new coronavirus restrictions in Europe brought back memories of March and April, when the pandemic decimated the industry. The international benchmark, Brent crude oil, dipped below $37 a barrel on Thursday, with the $2 fall taking losses for the week to more than 10 percent, the worst weekly performance in more than six months.

While traders said that the hit to fuel demand was not expected to be as large as this spring, when strict lockdowns curbed global consumption by more than a quarter, France and Germany together still account for about 4 percent of pre-pandemic consumption. Both countries have announced this week new measures aimed at slowing the spread of coronavirus.

Tighter restrictions in other European countries now seem likely, traders say, as cases of Covid-19 continue to rise rapidly. “Oil demand will lose ground as a result of the new lockdowns, with [motor vehicle] fuels taking a significant hit as transport will be curtailed to the minimum again,” said analysts at Rystad Energy, a consultancy.

Notably, the lowest price for Azerbaijani oil was recorded on April 21, 2020 ($ 15.81), and in July 2008, the maximum amount was $ 149.66.