Bolojan:Crude oil supplies will return to normal

Crude oil supplies will return to normal, and in this regard, the volume processed for the Romanian market at refineries supplying Romania will be satisfactory, Ilie Bolojan, the interim Prime Minister and interim Minister of Energy, stated on Monday during a press conference at Victoria Palace."Regarding fuels, there are two intertwined aspects stemming from the most critical one: fuel supply. While the previous crisis was primarily a price issue, the current one centers on supply capacity. Price issues arise from this capacity constraint because, when high demand cannot be fully met by supply on a day-to-day basis, upward pressure on prices inevitably follows. We are currently facing a situation where Petromidia?a refinery supplying a significant portion of fuel to the Romanian market?is operating at half capacity due to delays in crude oil deliveries. Consequently, the volumes supplied to the market have decreased, creating additional pressure on prices. These issues have now been resolved; crude oil supplies are returning to normal, and the volume processed for the Romanian market by refineries serving the country will stabilize," said Bolojan.According to the official, against the backdrop of crises strongly affecting the crude oil market, international prices have?unfortunately?returned to the levels seen in the spring of this year."Another issue was the transport of fuel from the Constan?a terminal to depots and gas stations across the country. We are facing a situation where?due to the much higher frequency of trains heading to the coast compared to other times of the year, and ongoing railway line works that effectively restrict us to using a single track (part of the PNRR projects that must be completed)?there have been difficulties transporting diesel by rail from Oil Terminal to depots, particularly in the western part of the country. These factors likely exerted additional pressure on prices. Let us not forget that we are dealing with two crises strongly influencing the crude oil market: the escalating situation in the Gulf?where future developments are unpredictable?and Russia's war of aggression in Ukraine, along with the situation in the Black Sea. Unfortunately, these two factors have caused international market prices to return to the levels seen in the spring," stated Ilie Bolojan.He added that, due to the tense situation in the Black Sea, insurance costs for oil tankers transporting crude in the area are much higher, and this is reflected in pump prices?not only in Romania but across all of Europe."We have returned to the levels seen in March?when prices peaked?and this is reflected in the prices at our gas stations. This trend is visible across Europe, not just in Romania; however, in addition to the previous situation, we are facing heightened tensions in the Black Sea. Insurance costs for oil tankers transporting crude in the Black Sea are significantly higher now than they were in the spring, and this is being passed on to the prices at the pump in Romania," the official stated. (Photo:https://www.facebook.com/)