Global oil prices plunge sharply
Tengrinews.kz — Global oil prices fell sharply amid signals that tensions between the United States and Iran could ease. Investors are betting on a diplomatic settlement and lower risks of supply disruptions from the Middle East.
As of 8:50 a.m. Astana time, January futures for Brent crude on London’s ICE exchange were down 6.94 percent at $91.49 per barrel.
Screenshot from ice.com
December futures for U.S. WTI crude fell 5.67 percent to $85.68 per barrel.
Screenshot from ice.com
What happened between the U.S. and Iran
One of the factors behind the decline was U.S. President Donald Trump’s statements on the situation involving Iran. After speaking with Qatari Prime Minister Mohammed bin Abdulrahman Al Thani, the U.S. leader said there had been positive progress toward ending the conflict.
Trump also said that the use of military force against Tehran does not currently appear necessary, although the United States is prepared for such a scenario if the situation in the Middle East changes.
At the same time, the U.S. President stressed that Washington intends to pursue a long-term solution and prevent Iran from acquiring nuclear weapons.
What is happening with Kazakh oil
Kazakhstan’s CPC Blend export crude is also falling in price. As of November 9, it stood at $116.01 per barrel, down 0.98 percent.
Screenshot from oilprice.com
What this means for Kazakhstan
Oil prices affect Kazakhstan’s export revenues, budget income and receipts to the National Fund. Therefore, a prolonged decline in prices could affect these indicators.
At the same time, a short-term drop in oil prices does not automatically mean lower budget revenues. What matters is the average oil price over a certain period, export volumes and other economic factors.
Kazakhstan’s 2026–2028 budget is based on key assumptions of $60 per barrel of oil and an exchange rate of 540 tenge per U.S. dollar. These parameters are used, among other things, to calculate export revenues and government spending.
Meanwhile, Kazakhstan’s draft 2027 budget assumes an oil price of $70 per barrel.