When a shortage occurs somewhere in the world, it is reflected everywhere, since the market is connected. This was stated by the Chairman of the Management Board of the Bulgarian Oil and Gas Association Svetoslav Benchev in the “Interview with NOVA”.
Benchev described the situation as “absolutely unprecedented”. According to him, the increase in fuel prices is most noticeable in aviation fuel, the price of which has increased by about 200% compared to the beginning of the conflict in the Middle East. “It is currently a highly sought-after product due to the use of a large number of aircraft in this operation. In addition, this product is obtained in the smallest quantities when refining oil”, he explained.
According to Benchev, currently palliative decisions are being made around the world. He warned that if the conflict continues for another 10-15 days, the price of oil could reach between $120 and $150 per barrel.
According to him, even if the conflict ends today, it will take time to restore the bombed installations and the affected infrastructure in the region. “It will take between a month and a month and a half - two for things to return to their previous state, both in terms of production and logistics”, he said.
Benchev also commented on the situation in Bulgaria, in particular the work of the refinery in Burgas. According to him, it has secured supplies until mid-April. “There are available quantities that allow work even in the first weeks of April”, he specified.
The Chairman of the Management Board of the Bulgarian Oil and Gas Association assured that fuels in Bulgaria will not run out. “What the prices will be from now on is very difficult to predict”, added Benchev.
According to him, while there is no clarity on how the situation in the Middle East is developing, world markets must be prepared for different scenarios. He expressed hope that fuel prices will not reach the levels of 2022, when the war in Ukraine began.