aA
SEB Lithuania's analyst Tadas Povilauskas says a surge in crude prices following last weekend's attacks on Saudi Arabian oil facilities may lead to a short-term increase of some 3-4 euro cents in gasoline and diesel fuel prices at the pump.
Analyst: Lithuanian retail fuel prices may rise 3-4 cents in wake of Saudi oil attacks
© AP / Scanpix

"We should not overdramatize the situation. It (the crude price surge) will certainly affect the wholesale fuel market and, eventually, the retail market," Povilauskas told BNS.

"A 10 percent hike in crude oil prices over the weekend may increase the end price by some 3 percent, that is, by 3-4 cents from 1.15 euros for diesel fuel and from 1.25 euros for gasoline," he said.

According to the analyst, the news of the attacks in Saudi Arabia jolted the market, which can have long-term implications.

"There was a consensus that oil prices might go even further down next year. But I think everybody will reconsider their attitude and forecasts in the wake of these events," Povilauskas said.

"Saudi Arabia is OPEC's key nation. The attack on the country's main (oil) facility showed once again that nothing is stable, especially in that region. That risk premium will add to the oil price in the near term, so I don't think everything will just go back to the previous level," the analyst said.

"If there are no new attacks and production in Saudi Arabia returns to a more or less normal level, then the oil price will stay close to 70 US dollars a barrel," he added.

Povilauskas noted that, despite the attack, crude prices remain at a lower level than a year ago.

The attacks by Huthi rebels on the Saudi oil facilities on Monday triggered the biggest rise in crude prices since the 1991 Gulf War. Brent crude futures prices jumped by 19 percent to around 72 dollars per barrel at the opening, but later settled at some 65-66 dollars.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
|Populiariausi straipsniai ir video

Lithuanian company offers solution for international control of coronavirus test and vaccine

After the global coronavirus pandemic began in Wuhan it has affected people all over the world....

Avia Solutions Group to sel Baltic Ground Services Poland

Avia Solutions Group , the largest aerospace business group from Central & Eastern Europe, has...

Paysera has new vice president for development abroad

Starting June 1, Marius Pareščius , IT expert, businessman, and innovator, will be responsible for...

Palanga airport set to reopen with 1st flight since lockdown

Hungary's Wizz Air is on Tuesday relaunching its regular service between Palanga and Dortmund,...

Pandemic threats: how lockdown affected startups

The COVID-19 pandemic faced by the world paralyzed a significant number of businesses ....

Top news

Foreign minister: EU's external borders unlikely to open until late June

The European Union 's external borders may remain closed until late June, Lithuanian Foreign...

Lithuania mulls setting up virtual flag airline (1)

The Lithuanian Transport Ministry proposes to set up a virtual flag carrier to reduce the country's...

Colombian student in Vilnius: once you go to other countries, you open a door that may be difficult to close

Colombian student Jorge Andres Agudelo Zuniga came to Vilnius in 2018 for studies via Australia. He...

Actor Gediminas Girdvainis passes away

Lithuanian theater and film actor Gediminas Girdvainis died at the age of 76 on Wednesday, the head...

3 new coronavirus cases in Lithuania

On Wednesday, 3 new COVID-19 cases were detected in Lithuania. Overall, Lithuania has already...

|Maža didelių žinių kaina