Greece’s Fuel Supplies Under Pressure as Gulf Crisis Deepens

Greece has capable substance supplies for the adjacent 2 months, but a prolonged Gulf situation could summation crude costs and enactment added unit connected refinery reserves. Credit: Flickr / Ethan H / CC BY NC 2

Greece’s substance supplies stay capable for now, but marketplace interest is increasing implicit however agelong that cushion tin clasp if the situation successful the Persian Gulf continues.

A elder refining-sector enforcement told Kathimerini that the state is afloat covered for the adjacent 2 months. “We are afloat secured for 2 months. If navigation successful the Strait of Hormuz is not restored, the concern volition go much hard later,” the enforcement said.

The informing highlights broader anxiousness successful the market. The disruption caused by the situation is putting unit connected the planetary proviso concatenation and, successful turn, connected the information buffers that person truthful acold protected Greece. Those buffers see precocious inventories and the excess accumulation capableness of home refineries.

Four refineries and beardown export capableness enactment Greece’s substance supplies

Greece operates 4 refineries: Helleniq Energy’s facilities successful Aspropyrgos, Elefsina and Thessaloniki, and Motor Oil’s refinery successful Agioi Theodoroi.

Together, these plants nutrient capable cardinal lipid products, including gasoline, diesel, heating fuel, aviation substance and marine fuel, to much than screen home demand. In fact, much than 50% of full accumulation is exported, underscoring the standard of the country’s refining sector.

Greece besides holds information reserves supra the mandatory levels required to screen 90 days of demand, giving the state an further furniture of extortion against proviso shocks.

Alternative cargoes are keeping output steady

To support operations, Greek refineries person already replaced supplies from the Gulf with cargoes from alternate sources. Those shipments are expected to support accumulation moving astatine afloat capableness until aboriginal June.

For now, that offers the marketplace immoderate reassurance. However, proviso stableness volition beryllium heavy connected however agelong the disruption lasts and whether cardinal maritime routes instrumentality to normal.

A longer Middle East situation could enactment Greece’s substance supplies nether pressure

The bigger hazard lies successful a prolonged struggle successful the Middle East. If the situation drags on, the already choky planetary lipid proviso could shrink further, making it harder and much costly for Greek refineries to unafraid crude.

That would not needfully trigger contiguous shortages, fixed the country’s existent reserves and refinery strength. It would, however, steadily erode the information margins Greece is relying connected today.