The price of some crudes around the world are hitting record lows, as oil crashed through $35 a barrel in New York, some producers were already living with the reality of much lower prices.
Fuel price reduction is continued in Georgia at the background of sharp oil price drop at the world market. Company LUKOIL has reviewed fuel prices afresh on Saturday and reduced it by 7 Georgian tetri as a result, cost of 1 l Euro Regular is declined to 1,56 GEL.
However in Georgia prices on most fuel stations such as WISSOL, GULF and ROMPETROL remain high and stand at 1,61, 1,65 , 1,63 respectively.
Oil has slumped to levels last seen in the global financial crisis in 2009 amid a global supply glut. While the prices of benchmarks West Texas Intermediate and Brent hover in the $30s, they represent a category of crude — light and low in sulfur — that is more highly valued because it’s easier to refine. Some producers of thicker, blacker and more sulfurous varieties have suffered heavier losses and are already living in the $20s.
Even oil prices from OPEC, which supplies about 40 percent of the world’s crude, are trading below the main two benchmarks. The daily price of 12 crudes produced by the Organization of Petroleum Exporting Countries stood at $33.76 a barrel on Monday, the lowest in seven years.
Ironically, those selling at the lowest prices have even more incentive to pump, potentially deepening the glut that’s weighing on prices.
“A lot of the producers might want to sell as much at current prices,” rather than a level that could be even lower in coming weeks, Abhishek Deshpande, an analyst at Natixis SA, said by e-mail.