Refineries dictate prices

 

When the global economic crisis hit in 2008, it also meant changes in the oil derivatives market. These changes also affected BiH. When it comes to the world market, the director of the BiH company HIFA OIL Tešanj, Venan Hadžiselimović, told the BiH news agency Patria that demand will likely "feel a certain stagnation or slowdown in growth in large economies such as the US and China, which would create a surplus in production, and thus supply, so a slight price drop can be expected" – stated Hadžiselimović.

However, this market is directly affected by global events such as natural disasters or conflicts. When it comes to cheaper oil in BiH, according to Hadžiselimović, it is conditioned by the relationship of refineries in the surrounding area, and prices are formed accordingly. Daily changes on world stock exchanges do not imply a direct impact or prompt reaction on the domestic market.

- In addition to these changes, refineries are prone to creating their own pricing policy (by maintaining or increasing premiums) such that a decrease on the world stock exchange does not always mean a direct impact on the domestic market – Hadžiselimović explains.

Regarding the arrival of the world's largest oil company "Shell" in BiH, Hadžiselimović emphasized that "every country that possesses crude oil reserves has significant advantages over others." Otherwise, the FBiH Government, last year, made a decision to declare the Concession Agreement for oil and gas exploration in the Dinarides, and then the Law on Oil Exploration and Exploitation in FBiH was adopted, which is a good basis for all future investors in BiH.

When it comes to domestic oil derivatives distributors, HIFA OIL Tešanj will strive to "maintain its leading position in the wholesale of oil derivatives in BiH and maintain its position as one of the highest quality distributors of 'black derivatives' in the territory of 9 countries from Austria to Albania – stated Hadžiselimović.