This will lead to higher domestic logistics costs, which will increase inflationary pressure on basic foodstuffs, writes the German Economic Team, noting that “the conflict with Iran has hit Moldova harder than neighboring countries in the region, since gas and petroleum products account for 67% of the country’s total imported energy supply.”
The week began with a rise in oil prices. Brent crude prices today exceeded $90 per barrel for the first time since early June amid a sharp escalation of the military conflict between the U.S. and Iran. On Monday, Brent prices jumped by more than 2–3%, settling in the $90.87–$91 range, while U.S. WTI crude rose to $84.29.
If the escalation in the Middle East continues, analysts predict that Brent prices will move further into the $91–$98 per barrel range in the coming weeks.
The current crisis is directly driving up global prices for automotive fuel, increasing the cost of gasoline in a number of countries by more than 30–40% since the beginning of the year. Right now, the retail market is reacting to rising crude oil prices and a major crisis in oil refining.
The profit margin for refining crude oil into gasoline has surged to historic highs. Due to a shortage of finished fuel, wholesale gasoline prices are rising even faster than crude oil prices, according to Trading Economics.
Crude oil accounts for more than half of the cost of gasoline. Every additional $10 in the price of a barrel of Brent automatically adds about 5–7% to the retail price of fuel at gas stations, according to market experts.
The law requires the National Agency for Energy Regulation (NARE) to recalculate prices every business day based on the average Platts quotes for the previous 14 days. As a result, gas stations in Moldova react more quickly than those in many EU countries.
