Azerbaijan reeling from oil prices
Azerbaijan is faced with an ever-increasing drop in its oil fund reserves due to the steep decline in world energy
prices, officials said.
The government of Azerbaijan in 1999 established its state oil fund to stabilize the economy, preserve oil revenues for future generations and finance major national projects.
Illham Shaba, the head of the Azeri Centre for Oil Research, told that if oil prices did not rebound to $ 60 per
barrel by 2010, the oil fund reserves would be depleted swiftly.
"Moreover, low prices on oil lead to reduction in investments in the alternative energy sources, thus deepening the world dependence on oil and other hydrocarbons," he said. He noted that, contrary to public sentiment, low oil prices do not transfer to a benefit for the consumer, as the decrease in revenue for oil-producing countries may further destabilize world markets.