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"Energy": The Kingdom's stock of oil derivatives is safe and reassuring.. and supply continues through Aqaba

"Energy": The Kingdom's stock of oil derivatives is safe and reassuring.. and supply continues through Aqaba

The spokesperson for the Ministry of Energy and Mineral Resources, Linda Al-Naimat, confirmed that the Kingdom's stock of oil derivatives is'safe and reassuring', and that the current storage levels meet the needs of the local market and support the continuity of supply, at a time when global energy markets are experiencing significant fluctuations due to geopolitical developments and disruptions in maritime traffic.

Naimat told Al-Rai that the pricing mechanism for oil derivatives locally is based on the average global prices of derivatives over a 30-day period preceding the announcement of prices, not on the price of crude oil on a specific day or on immediate increases in the markets.

She explained that the impact of current increases on the upcoming pricing depends on the global price levels of oil derivatives and their sustainability during the calculation period, noting that it is too early to determine the size of this impact before the period adopted for pricing is completed.

Regarding the Kingdom's stock, Naimat explained that the stocks are distributed between storage facilities in Aqaba, Ma'an, and the Jordan Petroleum Refinery, in addition to the operational stocks present at fuel stations spread across various regions of the Kingdom.

She confirmed that the distribution of stocks across the Kingdom is an important element in enhancing the security of supply and providing the needs of the local market.

On the impact of regional developments on import operations, Naimat said that the import and arrival of oil derivative shipments to the Kingdom via the port of Aqaba continued, as did the supply of the local market with its needs in a regular manner.

She pointed out that geopolitical developments and disruptions in navigation have affected global oil and oil derivative prices and import costs, including maritime transportation, insurance, shipping, and risk premiums.

Regarding the Strait of Hormuz, Naimat explained that all of the Kingdom's imported needs of oil derivatives and crude oil currently arrive via the port of Aqaba, making the stability of maritime traffic an important element in the supply system.

She added that the importance of the Strait of Hormuz stems from it being one of the most important energy supply routes globally, and therefore any disruption in navigation through it affects global oil and oil derivative markets, as well as shipping, insurance, and risk premium costs.

She pointed out that the impact on the Kingdom is linked to the source and route of shipments, in addition to the indirect impact resulting from the repercussions of any disruption in the Strait on global markets and maritime transportation costs.

Regarding dealing with the continuation of oil prices at high levels, Naimat said that if prices continue at high levels, the impact on energy costs, the local market, and the national economy is assessed, and appropriate measures and procedures are studied to deal with them according to market developments and regional and global conditions, while giving priority to the security of supply and the continuity of providing the Kingdom's energy needs.

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