Romania to feel impact of soaring oil prices

Effects of the soaring oil prices on the international markets, up to more than 40 USD/barrel, a level that was last reached during the Iraqi invasion of Kuwait in 1990, will also be felt on the Romanian market, which has not been completely deregulated yet.

With a non-deregulated market, which is 50% covered by imports, Romania will not be able to shun the impact of higher crude prices, but will feel it later.

More expensive oil is likely to cause losses of hundreds of thousands or even millions of dollars to refineries, while Petrom and Rompetrol might take to exports during this period, taking advantage of the international context.

“A natural temptation in this international context is to increase exports in the case of Petrom, as well as Rompetrol,” said Dinu Patriciu, president and main shareholder of private oil group Rompetrol, the second-largest player on the domestic market.

Should Petrom and Rompetrol take this opportunity, the two big players would play a lesser role in covering the domestic fuel market, which would pave the way for more counterfeit oil products, according to market sources. Last year, the black market was estimated at about one billion dollars, according to calculations presented by Ionel Blanculescu, the Control minister.

Petrom, the state-owned company that accounts for 50-60% of the domestic oil market, is generally regarded as the a barometer for fuel prices, whereas the private corporations are complaining about the Romanian market not being deregulated, which would bring price fluctuations in line with the international quotations.
adrian.mirsanu@zf.ro