Expert: SOCAR’s diversification policy a real support to prices of goods

Baku. 24 April. REPORT.AZ/ The diversification policy of the State Oil Company of Azerbaijan Republic (SOCAR) is a real support tool for prices of products.

Report informs, Oil markets editor of Reuters agency, Gleb Gorodyankin said at the SOCAR 3rd International Caspian and Central Asia Downstream Forum: Trading, Logistics, Oil refining, Petrochemicals.

“The European market is in a difficult position in terms of oil products. Because the United States does not export gasoline. In case of diesel fuel, there is stability. By the end of this year we expect the increase in diesel fuel offer from Russia and Kazakhstan. When processing products it is important for companies to create logistics. From this point of view, SOCAR's diversification policy (construction of the STAR plant) is a real support tool for the prices of products|”, expert said.

He said that the price for Azeri Light oil increased in 2016 compared to Brent oil. Expert also spoke about the demand in the European market, saying that the demand for the Urals oil has decreased on market: "Baltic countries where there is a high demand for this oil, the demand for Iranian and American oil has increased”.

He said that US oil transportation to Europe increased 4 times in January-April.

The volume of American oil has risen from 1.8 million to 6.7 million tons. The share of the US oil in the European market in 2017 was 7% and it is 12% since the beginning of year”.