The Chairman of the Management Board of the Operator – Terminals of the Federation of Bosnia and Herzegovina, Damir Kreso, told FENA that there are currently no disruptions in the supply of oil and petroleum products in the Federation of Bosnia and Herzegovina.
Kreso emphasized that the Operator – Terminals of the Federation, the company responsible for establishing and managing strategic reserves of oil and petroleum products, is carrying out activities related to their establishment and maintenance in accordance with the decisions of the Government of the Federation of Bosnia and Herzegovina and the competent ministry.
“Armed conflicts in the Middle East have once again raised concerns about the stability of the global oil market and the potential increase in fuel prices. Any escalation of tensions in a region that represents one of the world’s key energy hubs is reflected in crude oil prices and, indirectly, in the markets of importing countries, including Bosnia and Herzegovina,” Kreso explained.
He stressed that it was only last year, following the appointment of the new management of the Federation Terminals, that systematic filling of the Blažuj terminal with strategic reserves of oil and petroleum products began.
In addition, certain quantities are stored at the Živinice Terminal, meaning that after a prolonged period, the Federation of Bosnia and Herzegovina has actively begun establishing security reserves, which represent an important instrument of energy stability.
“Only last year did we begin systematic filling of the Blažuj terminal. The process of replenishing the terminal with new fuel quantities is ongoing, gradually strengthening security reserves and the Federation’s capacity to respond in the event of market disruptions. Oil reserves may be used in cases of natural disasters, interruptions in the supply of oil and petroleum products to the Federation’s market, sudden and extremely high price increases that could paralyze the economic system, as well as other unforeseen circumstances. In such situations, the Government of the Federation of Bosnia and Herzegovina may release additional quantities of oil and petroleum products onto the market in order to mitigate disruptions and ensure continuity of supply,” he said.
Due to the interconnected nature of the market, Kreso noted, part of these quantities may also spill over into Republika Srpska, effectively affecting the market of Bosnia and Herzegovina as a whole. Therefore, such a measure could stabilize the market, particularly in the short term.
“Strategic reserves can absorb the initial shocks, but long-term oil price trends primarily depend on global geopolitical and economic processes. At this moment, there are no supply disruptions in the oil and petroleum products market in Bosnia and Herzegovina, nor has there been a sudden increase in fuel prices. The situation is currently stable,” Kreso concluded.
