Global oil price fluctuations affect Petrom

The fluctuations of international oil prices have been reflected in the acquisitions made by Petrom through the Romanian Commodities Exchange (BRM) in order to meet the demands of its own refineries for imported petroleum. The mandatory requirement for state-owned enterprises (including Petrom) to conduct their transactions through the BRM has paved the way for a local oil price quote. Although established with this purpose in mind, the BRM cannot currently quote petroleum or wheat prices like a real exchange does, such as those in London or Chicago. Back in the days between the two world wars, the price of oil (and of the wheat) set on the Exchange in Bucharest (and in Braila) actually mattered on the international markets. The total transactions made by SNP Petrom through the Romanian Commodities Exchange exceeded $814 million in the first half of this year. Even though Romania was sheltered from the shock wave induced by the increase in oil prices on the international market, which reached about $40/barrel in late May-early June, Petrom’s officials blamed this global price increase for the subsequent rise in fuel prices. ZF