Global oil market remains highly strained, affecting Ukraine – Parallel gas station chain
The situation on global oil and petroleum product markets remains rather tense due to the conflict in the Middle East, which is inevitably affecting Ukraine and driving up fuel prices, according to the Parallel gas station chain.
"In the long term, everyone hopes for an end to attacks on oil infrastructure and the unblocking of the Strait of Hormuz. But the real market is highly strained. This is evidenced, in particular, by changes in fuel prices by the state-owned Ukrnafta," Parallel told the Energy Reform online portal.
The company noted that the current situation on international oil markets, on which Ukraine is fully dependent, remains unstable. Moreover, a rather rare situation is being observed, a gap between "paper" and physical trading.
"Brent crude futures have been trading below $100 per barrel since April 8. Traders are hoping for successful negotiations among the parties to the conflict around Iran. On the other hand, there is now a rush for physical volumes of raw materials. Here, prices are reaching $130–150, although normally the gap with exchange prices is not so significant," the chain's analysts said.
They added that tensions have intensified following U.S. steps toward a maritime blockade of Iran, resulting in elevated oil premiums and rising logistics and insurance costs.
Parallel explained that its own prices have remained unchanged for several days due to a "balanced pricing policy" and efforts to contain increases for as long as possible.
As of Tuesday, April 14, most gas station chains increased diesel prices by UAH 0.9–1.6 per liter, while gasoline and LPG prices largely remained unchanged, according to monitoring by Energy Reform.
According to the data, Ukrnafta raised diesel prices the most, by UAH 1.6 per liter, although they still remain the lowest.
UPG, Socar, and OKKO increased diesel prices by UAH 1 per liter, while WOG raised them by UAH 0.9 per liter. Parallel has not yet changed its prices.