Ongoing unrest in the Middle East should not have a significant effect on the price of natural gas and oil products in Lithuania, according to the director of the Lithuanian Energy Agency, Agne Bagociute.
Indre Genyte-Pickiene, the chief economist as Siauliu Bankas, for her part, argues that the oil market has so far reacted calmly to the ongoing conflict, with prices being pushed downward by sluggish demand and recovering production. She adds, however, that fuel prices may eventually respond to market developments.
“For the time being, there is no reason to panic about the idea that oil and gas prices and, consequently, energy prices will rise because of the conflict,” Bagociute told LRT public radio on Thursday. “We should also remember that last October, the events in Israel only had a short-term and slight impact on oil price growth.”
As Israel has launched a ground offensive against Iranian-backed Hezbollah targets in Lebanon, the price of Brent crude oil is hovering around EUR 70-73 per barrel, according to the Trading Economics institution.
It’s been a long while since the Middle East has faced a conflict of this magnitude, and for the time being, the oil market has reacted “quite casually,” Genyte-Pickiene said.
“Fuel prices are linked to the trends of oil prices, and it is natural that these reactions occur with some delay,” she told BNS. “Let’s hope however, that the most unfavourable scenarios will not come to pass.”
Source: BNS
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