FUEL at Serbian gas stations could become cheaper in three to four weeks, if the fall in crude oil prices on the global market continues. After the fall in prices on Friday by more than 10 percent, which was the biggest one-day reduction since April 2020, there was a rise in prices by about four percent on Monday. Brent was down $ 76 on Monday after falling to $ 73.45 a barrel.
Photo by Z. Jovanović
This change occurred because investors intensified demand in order to take advantage of favorable prices. Previously, the drastic reduction in prices was caused by a new variant of the corona virus and the fear of renewed global travel restrictions, which could disrupt the recovery of the oil market.
The trend of raw material prices is delayed in retail, because refineries do not procure oil on a daily basis, but have certain stocks at their disposal. Yesterday, the price of auto gas at certain gas stations in Serbia was one dinar lower than in the previous period, and 101.90 dinars should have been set aside for it. Eurodiesel cost 174.90 dinars, and gasoline from 166, 40 to 167.90 dinars.
The Secretary General of the Association of Oil Companies of Serbia, Tomislav Mićović, says that changes in the global market are always delayed in fuel prices in Serbia, as well as in all countries in the region and Europe. As he states, it can be expected that the effect of the reduction will be felt in our country in about a month.
Nebojsa Atanackovic, the president of the Union of Employers and a connoisseur of energy opportunities, believes that there will be a reduction in the price of fuel at Serbian gas stations if the downward trend in the price of black gold on world stock exchanges remains unchanged.
– The question is how long this movement of oil will last, but we can be satisfied even if there is no further increase in the price of derivatives in Serbia – Atanackovic points out. – It should be borne in mind that the effect of cheaper raw materials on the stock exchanges is more slowly reflected in fuel retail. On the other hand, when the price increases, that change reaches the pumps faster.
He points out that the trend of oil prices will depend on the decision of the Organization of the Petroleum Exporting Countries, OPEC. According to him, they are probably under pressure to increase production, which would lead to a further reduction in the price of oil, having in mind the current energy crisis and the jump in the prices of other energy sources.
The director of a Belgrade gas station, Slavisa Ilic, estimates that the fall in prices at gas stations could occur in about three weeks.
– It is difficult to accurately predict when fuel will become cheaper in retail and how much, it all depends on large systems on our market – Ilic explains. – When the competition lowers the prices, it does not suit anyone to keep it more expensive.
RUSSIA: NO NEED FOR URGENT MEASURES
RUSSIA does not see the need for urgent measures on the oil market due to the new omicron strain of the corona virus, Russian Deputy Prime Minister Alexander Novak said on Monday. He pointed out that there is no need for hasty decisions. Organizations of oil-exporting countries – OPEC and its allies did not respond to calls from the United States to pump more oil in order to reduce the prices of this energy source. They remain committed to gradually offsetting last year’s record production cuts by increasing deliveries by 400,000 barrels a day each month. January’s production will be discussed at this week’s meeting.
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