BAKU, Azerbaijan, October 2. Azerbaijan's oil and gas revenues are directly dependent on global prices and, therefore, can be volatile. Fitch's forecast for oil prices is $70 per barrel in 2025 and $65 per barrel in 2026–2027, the director of Sovereigns and Supranationals at Fitch Ratings, Arvind Ramakrishnan told Trend.
''Oil revenues are expected to stabilize in 2025-2027, with production volumes declining by about 9 percent compared to 2024 levels. Gas production, on the other hand, will increase by about 5 percent by the end of 2027 compared to 2024,'' he noted.
According to him, the investment climate in Azerbaijan is somewhat limited by the significant presence of the state in the economy, low levels of financial intermediation, and low volumes of foreign investment outside the energy sector.
Fitch believes that fundamental changes in the investment environment will take time. However, the expected start of oil production at the Karabakh field in 2029, as well as Azerbaijan's expanding role in transit trade, could contribute to growth in foreign investment in the coming years.
Meanwhile, the average price of a barrel of oil in Azerbaijan's 2025 state budget is set at $70.
