Romania's Black Sea crude oil refinery Petromidia, the largest in the country, will shut down for a scheduled revision in March, its owner said on Tuesday, potentially squeezing fuel supply and putting upward pressure on prices.

Romania is faced with a serious risk of fuel shortages and escalating prices following Kazakhstan’s decision to suspend crude oil deliveries through the Caspian Pipeline Consortium (CPC) , following drones attacks on ships near the Novorossiysk terminal. As Kazakhstan serves as Romania’s primary supplier of crude oil, this suspension could severely impact the country’s two operating refineries – Petromidia and Petrobrazi, which rely heavily on Kazakh imports for processing. With over 60% of Romania’s crude oil imports originating from Kazakhstan in recent years, and Petromidia showing dependence exceeding 80%, the halt threatens to ripple through the entire domestic fuel market. The suspension stems from heightened security concerns in the Black Sea. On 19 July Kazakhstan’s authorities in Astana issued a strong warning after recent attacks on commercial vessels, particularly oil tankers. The Kazakh Foreign Ministry condemned the incidents as unacceptable, noting damage to tankers loading Kazakh crude, including the ASIA and NISSOS IOS. In response, Kazakhstan not only paused loadings but also announced plans to seek compensation for material losses. According to industry sources cited by Reuters, the CPC pipeline stopped receiving Kazakh oil after operators shut down operations due to these disruptions. The U.S. also reacted, given the financial interests of ExxonMobil and Chevron in CPC, calling on Ukraine to stop attacking non-Russian ships. U.S. urges Kyiv to halt attacks on non-Russian tankers after Black Sea drone strikes Vulnerability of Romania’s refining sector The CPC pipeline represents far more than a secondary route; it is the critical artery for Kazakh oil exports, transporting approximately 80% of the country’s total output. Stretching about 1,500 kilometers from western Kazakh fields, including major sites in the Caspian Sea region, to the marine terminal near Novorossiysk in Russia, the system handled around 63 million tonnes of oil in 2024, with 55 million tonnes from Kazakhstan itself. Kazakhstan, the world’s 12th-largest oil producer with daily output of 1.8–1.9 million barrels, depends on this infrastructure to reach global markets. Although the pipeline crosses Russian territory, the crude retains Kazakh certification and remains exempt from Western sanctions on Moscow. This technical distinction has allowed European buyers, including Romania, to continue sourcing it reliably even amid the war in Ukraine. In Romania’s case, imports cover roughly 77% of crude needs, with about 63% of those imports coming from Kazakhstan, equating to nearly half of all crude processed domestically. The remainder arrives mainly from Azerbaijan, Norway, Libya, and smaller suppliers. Both major Romanian refineries feel the pressure. Petromidia, operated by Rompetrol (owned by National Company KazMunayGas )  , receives almost all its supply through the Midia port. Petrobrazi, run by OMV Petrom, incorporates Kazakh crude to a significant degree alongside other sources via Constanța. Economic consultant Adrian Negrescu has issued stark warnings about the situation. In a widely noticed Facebook post, he described the Romanian fuel market as entering “an unprecedented period of crisis,” emphasising that disruptions at the CPC terminal would directly affect pump prices and supply availability. Negrescu highlighted that politicians had previously reassured the public about secure supplies, yet the current scenario validates earlier concerns. He urged Parliament to prioritise the issue in its extraordinary session and consider declaring a state of energy emergency. Without swift action, he cautioned, Romania could face consumption restrictions, particularly for diesel, where imports meet around 80% of demand. Rising prices and market pressures Fuel prices in Romania have already begun climbing in anticipation of tighter supplies. Major distributors recently raised gasoline and diesel prices by 10 to 15 bani per liter (1€ – 5,21lei). In Bucharest, standard gasoline has approached 9 lei per liter, while diesel has surpassed 9.5 lei. Analysts predict further increases, potentially pushing diesel toward 10 lei and gasoline to 9 lei amid global trends. Brent crude futures recently surged above $90 per barrel, driven by low European inventories, especially for diesel, and constrained refining capacity across the continent. Experts point to multiple factors behind the price volatility: depleted stocks, Europe’s limited refining infrastructure, and reduced imports linked to ongoing conflicts in Ukraine and the Middle East. Dumitru Chisăliță, president of the Smart Energy Association, identified these as the primary drivers. The situation is compounded by disruptions elsewhere, such as tensions around the Strait of Hormuz and Houthi actions affecting Red Sea routes, which have further tightened global oil flows. The Ministry of Energy is actively exploring alternatives, including longer routes from Azerbaijan through Georgia and Turkey. While viable, these paths increase transportation costs, which will inevitably pass on to consumers at the pump. Rompetrol representatives have confirmed the halt in Black Sea deliveries but pledged to mitigate shortages through other means. Authorities note that strategic reserves could cover consumption for at least 90 days, providing a temporary buffer. Nevertheless, a prolonged blockade would exert significant upward pressure on prices and availability. The fallout extends beyond fuel. Higher diesel costs, critical for freight, agriculture, and industry, tend to elevate prices across goods and services. Analysts from institutions like Morgan Stanley have flagged particularly acute risks for European diesel stocks heading into autumn. For Romania, already navigating economic challenges, this energy vulnerability arrives at a sensitive moment. Sources: TVR info, Energynomics.ro, Financial Times, Reuters Caption: A corporate image of installations owned by the CPC pipeline consortium. [CPC website]

Rompetrol Rafinare (RRC), operatorul rafinăriei Petromidia,  a înregistrat în prima jumătate a acestui an o cifră de afaceri brută consolidată...

Rompetrol Rafinare (RRC), operatorul rafinăriei Petromidia,  a înregistrat în prima jumătate a acestui an o cifră de afaceri brută consolidată...

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