Although Bosnia and Herzegovina (BiH) is by all standards a mile away from the world, it is too obvious that the world economy is very important to us and has an influence on ours. The root of the problem is far from us, but it is being successfully replicated on our ground, and our authorities are sitting and watching the colors spill over BiH citizens. Well, when the situation in the world changes, I guess it will change in BiH as well. And the economic analyst Admir Cavalic talked about the current situation in the world, regarding the financial and energy markets.
He noted that we currently have record low oil prices on global markets: “This anticipation of the recession, some measures of the Biden administration and a number of other factors conditioned this. On the other hand, we have a relatively closed market for oil and oil derivatives not only for BiH, but also for the entire region, especially for BiH. We depend on four key wholesalers, which means that it is very difficult to talk about a free market, that is, that the laws of supply and demand apply as we expect.
He believes that a drop in prices is expected within a month.
“It is expected if this global oil price is maintained, if there are no surprises, the winter is unpredictable. But if it stays in the status quo within a month, something must change, and even sooner.”