SOCAR Trading: Region’s logistics take on strategic importance amid market volatility

In today's highly dynamic and unstable oil‑and‑gas market, the logistics solutions offered by the region have acquired strategic significance, Taghi Taghi‑zada, Chief Commercial Officer of SOCAR Trading, said during the Caspian and Central Asia Oil Trading & Transportation Forum in Baku, according to Report.

"Production metrics and refinery margins remain among the key factors for our industry. We're seeing margins retreat after the record highs of recent years. Although they still support profitability, they are gradually returning to 2019–2021 levels. In addition, onshore global crude inventories fell by roughly 20 million barrels last week—mainly due to China," he noted.

According to Taghi‑zada, on the supply side, Saudi Arabia continues to deliver an additional 500,000 barrels per day to the market under its OPEC commitments, keeping total production around 9 million b/d.

"The IMF has revised its global growth forecast down to 2.8 percent, which is a negative signal for the sector," he said, adding that the LNG shipping segment is clouded by uncertainty, while crude‑oil transport faces real sanctions and persistent pressure. Oil prices keep oscillating within a narrow band, adding stress and volatility. Importantly, current price levels stay within the international price cap, allowing Russian crude to trade inside the imposed limits," he said.