Sharp fluctuations in oil and gold prices in world markets affect both the country's economy and the population's budget in various ways. While the increase in oil prices raises fuel and energy costs globally, the situation is different in Azerbaijan.
Medianews.az reports that economic expert Natiq Jafarli, who gave a statement to Demokrat.az on the issue, said that the rise and fall of oil prices does not directly affect ordinary citizens because gasoline prices in Azerbaijan are regulated by the state.
"Therefore, even if the price of oil changes in the international market, there is no direct consequence for the citizens. In the case of gold, fluctuations are felt more. Some citizens bought when the price rose, but now, since prices have fallen, they are facing losses. Others see the current prices as an opportunity and buy, hoping that prices will rise again in the future."
The expert stated that, for this reason, personal and individual investors—meaning citizens—should be cautious in buying and selling gold.
"Buying small amounts of gold and using it as an investment often does not yield the expected effect and carries a high risk of falling victim to fluctuations."
Natiq Jafarli notes that individual investors must act extremely cautiously when trading gold. Especially small-scale investments often do not bring the anticipated profit, and citizens become victims of market fluctuations.
It should be noted that price stability in the global oil market also depends on strategic points. The Strait of Hormuz, considered one of the most important waterways in the world, monitors the "pulse" of global oil trade. About 20 percent of daily oil production is transported through this narrow strait.
Any political tension in the region or the possibility of the strait’s closure can cause sharp jumps in oil prices. This is a key factor directly triggering global inflation and affecting the energy security of all countries.
For informational purposes, it should be noted that the "Azeri Light" (CIF) brand of Azerbaijani oil has become more expensive in world markets. The price of one barrel of Azerbaijani oil increased by 3.81 US dollars or 3.07%, reaching 128.05 US dollars.
In Azerbaijan's state budget for this year, the average price of one barrel of "Azeri Light" brand Azerbaijani oil was calculated at 65 US dollars.