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Union of Oil Product Importers: Crude Oil Prices Keep Decreasing

According to the January 15 report, the price of Brent crude oil at the London Stock Exchange (LSE) (ICE Futures Europe) marked 33.99 USD per barrel, while the price of Light Sweet oil at the New York Mercantile Exchange (NYMEX) constituted 29.76 USD per barrel.

The current low prices are conditioned by various factors, including an excessive supply to the global oil market is one of the main preconditions.

The OPEC policy is also very important as it has taken a decision not to change oil extraction volumes. The fact that Iran has returned to the global market is also very important. According to the official statistics, the oil exports from Iran marked 1.3 million barrel a day and the volume is expected to increase in the future.

At this stage, the Chinese economy shows slowdown. Consequently, the month of January has recorded a considerable downturn in China’s oil imports.

China is the world’s second biggest oil consumer country.

For the past days a number of companies continued lowering fuel prices in the retail network. In general, the price of the most consumed Regular petrol per liter has shrunk by 0.15-0.20 GEL since January 1, 2016 in the branded filling stations. The price of Premium petrol has decreased by 0.13-0.21 GEL per liter and the price of EURO Diesel has decreased by averaged 0.15-0.33 GEL.

It should be also noted that the Georgian national currency continues depreciating against USD.

Namely, at the beginning of 2016 the GEL exchange rate marked 2.3966 against USD, while currently the rate has slipped to 2.4921 point.

Namely, today the prices of a liter of fuel in the branded filling station are as follows: Super petrol – 1.69-1.85 GEL, Premium petrol – 1.59-1.70 GEL, Regular Petrol – 1.39-1.59 GEL, Diesel L-62 – 1.37-1.49 GEL; Euro Diesel – 1.39-1.65 GEL.