The conflict in the Middle East will not affect fuel prices in Ukraine in the next two weeks. This was stated by Oleksandr Sirenko, an analyst at Naftorynok Consulting Company, during a telethon.
“Currently, large volumes of fuel purchased at low prices are moving to the Ukrainian border. Therefore, I do not expect a big jump in prices due to the conflict in the Middle East,” said Sirenko.
According to him, current stocks and purchases allow for a stable price to be maintained at least until the end of June, when it will become clear how long the confrontation between Iran and Israel will last.
The analyst also recalled that even the recent drop in global oil prices, which followed Donald Trump’s economic steps, did not have a major impact on the cost of fuel in Ukraine:
“When Trump declared economic war on many countries over taxes in April, he ‘knocked down’ the price of oil from $73 to $60 per barrel. At the same time, diesel prices at our petrol stations fell by only 5%.”
However, the continuation or escalation of the conflict between Israel and Iran could have negative consequences in the long term. Sirenko stressed that the rise in global oil prices is primarily beneficial to Russia, which continues to sell energy through its shadow fleet despite the sanctions.
“This is sad news for us because it is our enemy who benefits from high prices. He gets an opportunity to earn extra money on the same volumes that he continues to export… Therefore, any price increase is a signal for us to engage diplomacy even more for new sanctions against Russia,” Sirenko concluded.
According to the expert, diplomatic pressure on Russia and tougher sanctions against its energy sector should be a priority for Ukraine and its partners in the event of further turbulence in the oil market.
