SOCAR assesses the prime cost of oil extraction at its deposits at $20/barrel

​SOCAR assesses the average prime cost of oil extraction at its deposits at $20/barrel, Vice-President of SOCAR for investment and marketing, E. Nasipov, said.

Taking into account the fact that we extract oil on the surface and in the sea, the prime cost of oil extraction at old deposits on the surface is higher than that of offshore deposits. On average the prime cost of our oil is $20/barrel, E. Nasipov, said.

Speaking about the world oil market, he said that the fall of oil price makes us worry. SOCAR forecasts the improvement of the oil market environment.

We are sure that the price will go up, he said adding that many factors influence on oil price making, so it is difficult to forecast its dynamics.

Economic issues play a certain role, but political factors regulating intergovernmental relationships have an impact as well. Oil price might fall to $20/barrel but it will not last long he said.

Iran’s entering the oil market will also influence on oil prices.