Azeri Light oil price tumbles

Azeri LT CIF crude oil, exported from Azerbaijan to the world markets, decreased by $ 0.37 (0.90%), settling at $ 40,89 per barrel, Report says.
The lowest price for Azeri Light was recorded on April 21, 2020 ($ 15.81), and in July 2008, the maximum amount was $ 149.66.

The record oil production cuts that OPEC+ initiated in response to the demand and oil price collapse have helped the oil market stabilize in recent months.   

Yet, oil prices have been stuck in the low $40s since the second quarter. While this is a vast improvement—double that of the lows seen in April—$40 oil is roughly half the oil price that many OPEC members, including the top producer and de facto leader, Saudi Arabia, need to balance their budgets.

OPEC and its key non-OPEC partner Russia need oil prices higher than $40 to support their oil-dependent economies, which have taken a hit from the pandemic-driven slowdown.

However, prices have stubbornly lingered in a narrow range since June, after signs started to emerge that global oil demand—albeit on the mend—is not recovering quickly enough to warrant higher prices.

Notably, Russia’s central bank has warned that crude oil prices could slump to $25 in its risk scenario for monetary policy over the next three years.