Crude oil price falling but cost of fuel in Serbia continue to rise

The price of a barrel of crude oil on the London market fell by 6.4 per cent, to USD 91.63, while on the US market it fell by 7.6 per cent, to USD 85.60. On the other hand, the price of fuel in Serbia continues to rise.

A litre of Eurodiesel will cost a maximum of 220 dinars per litre at petrol stations in Serbia until Friday, while Europremium BMB 95 petrol will cost a maximum of 180 dinars. In one week, the price of diesel has increased by 4 dinars and the price of petrol by 5 dinars.

On global commodity exchanges, the price of crude oil fell significantly last week, because buyers are concerned about growing recession risks in some economies, which could cause a drop in demand for oil.

After jumping more than 10 per cent, the price of crude oil fell sharply last week as buyers were concerned about predictions of a possible global recession that would mean weaker demand for oil.

In its autumn forecasts, the International Monetary Fund (IMF) warned that one-third of the world economy is likely to decline this or next year due to falling real incomes and rising prices. The IMF estimates that the world economy will grow by 3.2 per cent this year, while growth could slow to 2.7 per cent next year. In the US, China and the Eurozone, economic activity will almost stagnate, according to IMF estimates.

As of 1 December, Serbia will be banned from importing Russian oil through the Adriatic pipeline JANAF. However, the decision to ban the import of Russian oil into Serbia will not affect the stability of the domestic market.

The NIS Company will buy oil from other suppliers, as has been the case so far. But for many, it will be more expensive. Last year, about 50 per cent of the crude oil from Iraq, 10 per cent from Kazakhstan and about 1 per cent from Norway was processed in the Pančevo refinery. These are the markets that, among others, will now see an even higher demand for their oil. Iraq ranks 8th on the list of the world’s largest oil producers while Kazakhstan and Norway are not in the top 15.

(Blic, 17.10.2022)


This post is also available in: Italiano

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