Azernews.Az

The Azerbaijani parliament is due to discuss the country`s 2009 budget in November, with experts offering to revisit the budgetary draft amid falling crude prices in world markets.
Economics expert Zahid Mammadov says the oil price set in the state budget could be adjusted after the presidential elections in the United States.
"Changes are expected in crude prices after the November 4 vote," he said, adding that Azerbaijan, which receives hefty revenues from its energy sector, should also evaluate the views of oil-producing countries of the oil cartel OPEC.
Some analysts say that if the oil price is set at $80 a barrel in the 2009 budget, a budget deficit will be reported next year.
Ali Masimli, member of Azerbaijan`s parliamentary commission on economic policy, agreed that these estimates were rather risky. At the same time, he said keeping the price at $70 was acceptable. "If the oil price is set not at $80, but at $70, in the budget, a safety cushion will be created."
Expert Ilham Shaban maintained that Azerbaijan`s Economic Development Ministry "was not properly assessing the realities."
"Projections that are far from reality pose a threat to the country`s economy," he said.
The ministry had predicted the oil price for 2009 at $125 a barrel in the best-case scenario, $100 on average, and $80 in the worst-case scenario.
Meanwhile, oil prices continue to slide in world markets, with Brent crude falling below $60 on Monday. The price was at record lows of $59.32 since May 2007.
The fall is linked to the decreasing demand for energy resources and the increasing rate of US dollar against a number of other currencies.
The development has affected gasoline prices, with the price per gallon falling by 53 cents in the U.S.
OPEC might again consider cutting production to keep the oil price between $70 and $90, analysts say.
The slump in crude prices has also brought down the demand for gas in markets worldwide.