The military conflict in the Middle East is escalating, and oil prices are chasing $120 per barrel - this is the biggest increase in price in over three years and since the beginning of the military campaign against Iran.
Risk for global oil supplies
"If this war continues for a longer time, the hole of over 20% in global oil supplies will not be filled by anyone. No one can start producing what was passing through the Strait of Hormuz. Russia can increase, but not much. Venezuelan oil is very different - it cannot be processed in our refineries. The rest are small players", commented energy expert Yavor Kuyumdzhiev on the show "Denyat ON AIR".
According to him, the continuation of the conflict could lead to even greater shortages, and at this stage we are "relatively protected from the lack of oil", but we are not protected from rising prices.
Where does oil come from for Bulgaria
Kuyumdzhiev noted that over 80% of the oil that comes to Bulgaria comes from Kazakhstan.
"Our oil reserves are within two to three weeks, which are located in the refinery. There are no reserves outside the refinery. The reserves should be for 90 days. Certainly, a large part of these reserves are not stored in Bulgaria. We have 30 days of reserves in the country", Kuyumdzhiev told Bulgaria ON AIR.
Is a new fuel price increase expected
When asked how much fuel prices will increase in our country, he replied that no one has any idea.
"Currently, we are still buying fuels that are produced from oil at the previous prices. The next oil deliveries will be at the new prices. The increase will continue,", the energy expert predicts.