The Chairman of the Union of Oil Product Importers, Vakhtang Iobashvili, does not expect major changes on the global oil market.
Speaking to BMG, he said earlier expectations that recent developments in Venezuela would have a significant impact on global oil prices did not materialize.
“Venezuelan oil has not yet fully entered the global oil market under the new conditions. However, the United States guarantees that this process will not have a significant impact on global oil markets. On the contrary, they assure us that the market will stabilize, become more regulated and predictable. I hope so, too, and I expect that the oil market—globally, not just in Georgia—will remain stable.
If the volume of oil products increases on global exchanges, meaning that refining volumes go up, this will first lead to market regulation and stabilization, and afterwards, could possibly result in cheaper fuel worldwide. This is exactly what the United States is aiming for and signaling,” Iobashvili said.
Oil prices have increased again, despite the fact that the week began with price drops across all major oil grades. The earlier decline was linked to developments in Venezuela, which raised expectations that the country—holding the world’s largest proven reserves—would boost production, even though current output remains low.
As of today, crude oil prices exceed $57, WTI is trading at nearly $57, and Brent prices have climbed above $61 per barrel.
