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Conflict in Karabakh called “useless” for oil

Analysts interviewed by CNBC called the armed conflict in Nagorno-Karabakh between Armenia and Azerbaijan “useless” for oil and gas prices. In their opinion, fuel quotes are unlikely to grow even if the situation worsens.

The region in which the clashes occur is important in terms of fuel supply — international oil and gas pipelines pass through it. In addition, Azerbaijan is an oil and gas producing country, which accounts for about 90 percent of exports. However, even hostilities are not able to cause serious disruptions in production and supply, and after them, a deficit in the global market, said Edward Bell, a top manager of the Dubai bank Emirates NBD.

“If the premium for geopolitical risks is still not included in the price, I don't think this can happen in the near future,” Bell said.

Aggravation in the Armenian-Azerbaijani relations began on the morning of September 27. Both sides announced the provocations of the enemy and their own military successes. Baku claims to have advanced deeper into the territory of the unrecognized Nagorno-Karabakh Republic and occupied several villages.

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