Azerbaijan: Crude Oil Market 2024

Crude Oil Market Size in Azerbaijan

The Azerbaijani crude oil market declined remarkably to $X in 2022, waning by -25.3% against the previous year. Overall, consumption recorded a precipitous setback. Over the period under review, the market hit record highs at $X in 2012; however, from 2013 to 2022, consumption stood at a somewhat lower figure.

Crude Oil Production in Azerbaijan

In value terms, crude oil production reduced to $X in 2022 estimated in export price. In general, production, however, continues to indicate a deep downturn. The pace of growth was the most pronounced in 2018 with an increase of 14% against the previous year. Over the period under review, production attained the maximum level at $X in 2012; however, from 2013 to 2022, production stood at a somewhat lower figure.

Crude Oil Exports

Exports from Azerbaijan

In 2022, approx. X tons of crude petroleum oil were exported from Azerbaijan; growing by 15% against the previous year's figure. In general, total exports indicated a noticeable increase from 2012 to 2022: its volume increased at an average annual rate of +4.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +43.2% against 2020 indices. The pace of growth appeared the most rapid in 2016 when exports increased by 55% against the previous year. The exports peaked in 2022 and are likely to see steady growth in the near future.

In value terms, crude oil exports soared to $X in 2022. Overall, exports, however, showed a relatively flat trend pattern. The pace of growth was the most pronounced in 2021 when exports increased by 69%. The exports peaked at $X in 2013; however, from 2014 to 2022, the exports failed to regain momentum.

Exports by Country

Turkey (X tons), Italy (X tons) and India (X tons) were the main destinations of crude oil exports from Azerbaijan, together comprising 62% of total exports.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Turkey (with a CAGR of +54.8%), while the other leaders experienced more modest paces of growth.

In value terms, Italy ($X) remains the key foreign market for crude petroleum oil exports from Azerbaijan, comprising 34% of total exports. The second position in the ranking was taken by Israel ($X), with an 8.6% share of total exports. It was followed by India, with an 8.3% share.

From 2012 to 2022, the average annual rate of growth in terms of value to Italy stood at +3.4%. Exports to the other major destinations recorded the following average annual rates of exports growth: Israel (+1.5% per year) and India (-0.1% per year).

Export Prices by Country

The average crude oil export price stood at $X per ton in 2022, growing by 7% against the previous year. In general, the export price, however, showed a noticeable shrinkage. The growth pace was the most rapid in 2021 when the average export price increased by 36% against the previous year. The export price peaked at $X per ton in 2012; however, from 2013 to 2022, the export prices stood at a somewhat lower figure.

There were significant differences in the average prices for the major export markets. In 2022, amid the top suppliers, the country with the highest price was Croatia ($X per ton), while the average price for exports to Turkey ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Vietnam (+2.9%), while the prices for the other major destinations experienced mixed trend patterns.

Crude Oil Imports

Imports into Azerbaijan

In 2022, overseas purchases of crude petroleum oil were finally on the rise to reach X tons for the first time since 2019, thus ending a two-year declining trend. Over the period under review, imports enjoyed a significant expansion. As a result, imports attained the peak and are likely to continue growth in the immediate term.

In value terms, crude oil imports soared to $X in 2022. In general, imports posted a significant increase. As a result, imports attained the peak and are likely to continue growth in the immediate term.

Imports by Country

Turkmenistan (X tons), Russia (X tons) and Kazakhstan (X tons) were the main suppliers of crude oil imports to Azerbaijan, together comprising 99.9% of total imports.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by Turkmenistan (with a CAGR of +131.6%), while imports for the other leaders experienced more modest paces of growth.

In value terms, Turkmenistan ($X), Russia ($X) and Kazakhstan ($X) appeared to be the largest crude oil suppliers to Azerbaijan, together comprising 99.9% of total imports.

Turkmenistan, with a CAGR of +177.6%, recorded the highest growth rate of the value of imports, in terms of the main suppliers over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

The average crude oil import price stood at $X per ton in 2022, growing by 14% against the previous year. Overall, import price indicated a pronounced expansion from 2012 to 2022: its price increased at an average annual rate of +4.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, crude oil import price increased by +52.5% against 2018 indices. The most prominent rate of growth was recorded in 2018 an increase of 36% against the previous year. The import price peaked in 2022 and is likely to see steady growth in the immediate term.

Average prices varied noticeably amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was Turkmenistan ($X per ton), while the price for Kazakhstan ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Turkmenistan (+19.9%), while the prices for the other major suppliers experienced mixed trend patterns.

Source: IndexBox Platform

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