The new events in the Middle East with the involvement of Iran come to intensify the uncertainty in the crude oil market but also to push Brent and domestic fuel prices to higher levels.
According to executives in the Greek oil market, Iran’s involvement may have been discounted but further escalation of tension will dramatically affect the international market.
Combination
As they explain to OT, the Brent price trend will now be above 90 dollars a barrel due to the fear of escalation of hostilities in the Middle East alone.
“Iran’s attack last weekend on Israel came to be added to a series of events that cause problems in the international market of petroleum products”, the president of the Association of Petroleum Trading Companies of Greece and president and CEO of ELINOIL, Mr. Yannis Aligizakis, comments characteristically to OT.
The market is characterized by a lack of products, due to the European sanctions on Russian refineries, the damage suffered by the refining units in Russia due to the Ukrainian attacks and at the same time due to the high demand from China and India.
The two countries are supplied by Russia and now the delays in oil production are turning them to markets from which Europe and the USA are supplied.
“It is a combination of events, including the problems of transiting cargo from the Red Sea, which worsen the situation in the oil market,” the experienced executive of the domestic oil market points out.
“It is not excluded, depending on the intensity and duration of Iran’s involvement in the Middle East, Brent prices on a regular basis above 90 dollars a barrel. Until now, the prevailing trend has been at 85 to 90 dollars per barrel”, notes Mr. Aligizakis.
The domestic fuel market
According to him, the domestic fuel market is fatally affected: “If we also take into account the increased demand for gasoline and diesel for traffic due to increased travel ahead of the summer season, then the prices in the Greek market will not remain unaffected”, the president emphasizes and CEO of ELINOIL hastening, however, to clarify: “Of course, let me remind you that the petroleum sector does not have the possibility for higher profit margins. And this is because for the last almost three years it has been under the regulatory regime of the ceiling on gross profit margins”.
SOURCE: OT.GR
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