Hungary's Strategic Oil Maneuver Amid International Pipeline Disruption

Hungary taps into its strategic oil reserves, releasing 1.8 million barrels after a drone attack halted the Druzhba pipeline. Despite Croatia's claims of sufficient oil transit, Hungary and Slovakia face supply challenges. MOL Group prioritizes crude stock access until April 15, while securing oil through alternative routes.

The Hungarian government has announced the release of approximately 1.8 million barrels of crude oil from its strategic reserves. This decision follows a disruption to the Druzhba pipeline caused by a drone attack in late January. The pipeline is crucial for supplying Russian oil to Hungary and Slovakia.

Despite the release, Croatia's JANAF pipeline operator suggested that the measure might be unnecessary as non-Russian oil continues to be transported efficiently. They reported that several tankers carrying non-Russian crude oil for MOL Group are en route to Croatia's Omisalj Terminal to ensure continued supply.

Both Hungary and Slovakia face ongoing oil supply challenges following the attack. MOL Group, which operates the Slovnaft refinery in Slovakia, retains priority access to released reserves until mid-April, needing to return them by late August. Slovakian authorities have also declared an oil emergency, agreeing to release 1.825 million barrels to manage the situation.

(With inputs from agencies.)