Russian oil ban, what will happen in Italy? From (high) price to Luco refinery in Sicily

Depends on Italy Gas Russian but not his Petroleum. Only 10% of the crude oil consumed on the peninsula totals 5.7 million tons of Russian descent. Our main supplier at the momentAzerbaijan (23%) followed Libya (18%) and Iraq (about 15%). So the first thing to clarify is that there will be no shortage of diesel due to the ban Gas. In the past, for example, during the 2011 Libyan war, Italy was able to quickly shift raw materials from other countries to the then major supplier (we imported 20% of our oil needs from Tripoli).

Oil, price rise (but not maximum)

The price is different. Brent (Petroleum Extracted) EuropeIt crossed $ 120 per barrel (159 liters) this morning. However, this is not the highest price recorded this year. The peak still touched $ 130 on March 8 (two weeks after the start of the Russo-Ukrainian war).

It is reasonable to imagine that fuel prices will rise again despite the fact that the oil market is used to very strong and unpredictable fluctuations. For example, a potential deal on Iranian nuclear power could suddenly change the situation.

The problem for Italy

The ban poses another major problem for Italy: in Priolo, Sicily, there is a large refinery owned by the Russian Lukoil, which refines only Russian oil. The company is called ISAB and provides a lot of work in that area to ensure vital traffic in the port of Priolo. In the days to come, government intervention will definitely be needed to protect employment.

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The Russian oil embargo mainly affects Germany, which until recently accounted for 35% of its gasoline needs from crude oil from Moscow, but already in April this share fell to 12%. An indication that the oil embargo could act relatively quickly by reducing the hard currency revenues for Russia and its military apparatus in a timely manner.

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