Polish company PKN Orlen is losing around $27 million a day due to a ban on the supply of Russian crude oil. The company continues to use oil supplied from the Druzhba pipeline to supply a refinery in the Czech Republic of Litvinov, the Financial Times reported.
Complete replacement of Russian oil requires improved supply logistics, which we are working on with the Czech government
Daniel Obaitek, the company’s executive director, told the publication.
The head of the company explained the losses by the difference in the price of Russian fuel by pipeline and expensive alternative sources, where the cost is 30 dollars per barrel. At the same time, Obaitek is convinced that Russian oil companies are “still flooding Europe with petroleum products”, despite EU sanctions. At the same time, the director of the company did not provide specific evidence of violations of the restrictions.
Obaitek also criticized German producers who he said intend to access re-exported Russian crude soon.
The German side should think about the moral implications of what they are doing… We are very interested in the German market, especially because we know it.
- said the head of the company.
In this market, Obaitek said, the company already has 600 stations, but the concern will not stop there and wants to offer an alternative to diversification for the German oil refining sector.
Commodity analysts StanChart previously predicted that global oil demand would hit a new all-time high of 102.24 million bpd in August 2023, surpassing the previous high of 102.2 million bpd in August 2019.
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