Decreased oil prices will not harm Azeri budget

According to research carried out by the IMF for its Regional Economic Outlook 2008 report, the Azeri state budget will not suffer unless the price of oil decreases to less than USD 40 a barrel.

This ‘lowest practical price’ indicator is different for different oil producing countries. The bottom line for the United Arab Emirates is USD 23, for Qatar USD 24, Kuwait USD 33, Libya USD 47, Saudi Arabia USD 49 and Kazakhstan USD 59.