A threatening expansion of the war against the Iran on the energy infrastructure in the Gulf Oil prices driven upwards. The price of Brent oil rose by up to six percent to over $109 per barrel. Governments around the world are reacting to the sharp rise in fuel and energy prices. Italy cuts taxes, Slovakia takes action against fuel tourism, and in Egypt companies are supposed to close earlier.
In Italy The government under Giorgia Meloni imposed taxes by decree petrol and Diesel lowered. The Prime Minister said on According to Transport Minister and Deputy Prime Minister Matteo Salvini, the tax cuts are “limited in time”. As a third measure, the decree provides for a so-called anti-speculation mechanism, with which prices at gas stations and from oil companies are linked to the development of crude oil prices on the world market.
Higher prices for cars with foreign license plates
In the Slovakia Fuel is cheaper in many places than in neighboring countries. The government there under Prime Minister Robert Fico is now taking action against fuel tourism and restricting the sale of diesel. In the future, gas stations will be able to limit the amount they sell to one full tank and ten additional liters, and charge higher prices for cars with foreign license plates. Fico speaks of a rush of drivers from Poland, and dozens of gas stations in the north of Slovakia have literally been bought empty. The measures initially apply for 30 days and do not affect gasoline.
In Egypt Rising oil prices also hit the state treasury because energy is partially subsidized. Companies will close one hour earlier from March 28 to save energy, Egyptian Prime Minister Mustafa Madbuli said. Restrictions also apply to the government: the electricity in the cabinet building will be switched off at 6 p.m. starting next week.
The US government plans to announce its measures this week. According to the Bloomberg agency, US Vice President JD Vance and other high-ranking government officials are scheduled to meet with representatives of the oil industry on Thursday.
USA could lift regulation on summer gasoline
According to insiders, USA Regulations on the sale of special summer gasoline will be temporarily suspended, Reuters news agency reported. This is what President wants Donald Trump curb the rise in energy prices, according to three people familiar with the matter. The move means refineries and gas stations wouldn’t have to switch to the more expensive, smog-reducing summer varieties as usual. In addition, gasoline with an ethanol content of 15 percent (E15) may also be sold during the peak travel season in summer. In the USA There are usually stricter environmental regulations in the warm months. The prescribed summer gasoline is less volatile than winter gasoline to reduce evaporation in hot weather and thus limit the formation of smog. However, the production is more complex.
According to broker Tank Tiger, demand for distillate storage capacity in the USA has more than tripled since the start of the Iran War. Traders are speculating that increased prices in Europe and Asia will boost US exports of diesel and kerosene. Weekly bids for storage space rose 242 percent to 1.3 million barrels this month compared to February, said Tank Tiger manager Steven Barsamian. This is the clearest signal yet that the market is preparing for continued disruption to shipping traffic through the Strait of Hormuz.
Iran stops gas deliveries to Iraq, Saudi Arabia cuts production
The Iran has now apparently stopped natural gas deliveries to neighboring Iraq in order to cover its own needs. An Iraqi government official told the Reuters news agency. The attacked Pars field is the Iranian part of the world’s largest natural gas reserve, which the Islamic Republic shares with Qatar. Iran uses the natural gas produced there almost exclusively for its own needs.
The world’s largest oil exporter Saudi Arabia According to insiders, it has cut its production by two million barrels per day (bpd) to around eight million bpd. The Iraq The second largest producer in the Organization of the Petroleum Exporting Countries (OPEC) cut production from its main oil fields in the south of the country by 70 percent to 1.3 million bpd. The United Arab Emiratesthird-largest OPEC producers, have more than halved their production, according to insiders. Qatar normally supplies around 20 percent of the world’s liquefied natural gas (LNG) supply, but stopped operations at its LNG plants on March 2, leaving the global market currently 20 percent short of supply. Analysts fear that damage to the facilities could prolong the outage. Qatar’s state energy company QatarEnergy confirmed Rocket attacks on the industrial city of Ras Laffan.
Russian oil exports slowed despite increased demand
Russia only benefits to a limited extent from the sharp rise in oil prices. Ukrainian drone attacks on export infrastructure and bad weather are slowing the country’s oil exports, Reuters estimates showed on Tuesday. These are based on data from the financial service provider LSEG and from industry insiders. Oil shipments from the three most important Russian western ports of Primorsk, Ust-Luga and Novorossiysk could fall to 1.7 million barrels per day in March. 1.8 million were originally planned for the month.
The demand for Russian oil has increased. Asian countries such as Thailand, Indonesia and Sri Lanka expressed interest after the US a one-month exemption for the purchase of Russian oil had granted. In addition, large state-owned Chinese oil companies are ordering Russian crude oil cargoes again after a four-month break.