According to him, this was caused by production and export of large volume of crude oil and natural gas by US: “So, the US has turned into a exporting country from importing country. The profitability line in shale oil production in US reduced to $45-50 a barrel in recent days, while it was $60 in previous years. Consequently, in spite of efforts of OPEC and non-OPEC countries to artificially reduce output, the US shale oil and gas producers start to export large volume of crude oil to world markets when the oil price exceeds $45 a barrel. This influences supply and demand balance of the crude oil in the world market. Of course, other factors also have impact on the crude oil prices. For example, production and processing weakened due to Harvey hurricane in Mexico gulf and this led to Brent crude to rise up to $52 a barrel”.
Taking into account the expectations, the vice president noted that the forecast on crude oil price in the world ($46-60 a barrel) market is still actual: “Favorable crude oil price for SOCAR is $60-65, however, the company takes into account the realities in its strategy”.