Tuesday, 04 August 2020 12:08

SOFAZ still meeting budget commitments

The State Oil Fund of the Azerbaijan Republic has sold assets worth $515.5 million at the currency auctions held in July 2020, the State Oil Fund of the Azerbaijan Republic reports.

As noted earlier, during the last year's period of high crude oil prices, SOFAZ accumulated more than $ 43 billion which is close to the total GDP of the country's economy. These funds, which are growing under favorable conditions of rising oil prices, are used to cover the shortage of funds in the market, where SOFAZ acts as a "safety cushion" during frequent crises.

The SOFAZ budget for 2020 provides for a budget commitment of 11.56 billion manats, which means that the Fund will sell a total of $ 6.8 billion this year.

As reported, the price per a barrel of Azerbaijani oil updated the anti-record fixed 19 years ago, falling to $15.81 per barrel on April 21, 2020. Previously, the lowest price for a barrel of "Azeri LT CIF" was fixed in December 2001 ($19.15), the highest one was registered in July 2008 - $149.66.

When approving the SOFAZ budget for 2020, the price of crude oil was set at $55 a barrel, and the oil and gas giants predicted a weighted average oil price at the end of 2019 at around $61 per barrel.


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