The introduction of quotas on Ukrainian oil imports by the European Union in mid-June led to an increase in domestic prices for the product, industry analytical agency Infagro reported on Wednesday.
“In the first two weeks of the quotas, Ukrainian suppliers have already used about 25% of the allocated volume, and demand from European buyers remains high due to the price difference,” analysts said.
They noted that dumping in the trade of Ukrainian butter is causing discontent among Polish producers, which could negatively affect negotiations on further expansion of trade privileges for Ukraine. The European Commission is already taking these signals into account, the report said.
According to experts, preliminary estimates show that despite a pause in exports at the beginning of the month, significantly more of this product was exported from Ukraine in June than in the first quarter on average. The main driver was high export prices: in the EU — $7,300–7,500/ton (FCA), in Moldova — at least $7,000/ton.
At the same time, in the second half of June, domestic prices for oil continued to rise.
“Despite the decline in production compared to May, oil production in July is expected to be significantly higher than last year,” Infagro predicts.
