The cost of transporting and insuring energy cargoes has exceeded a third of the value of the goods, ministers from OPEC and non-OPEC producing countries warned. They met in Riyadh to discuss disruptions to energy flows and the implications for oil markets.
According to the statement, quoted by Reuters, the rise in prices is making it difficult to transport crude oil and refined products in a timely and efficient manner. Ministers said high costs were already putting additional pressure on the global economy.
“Ensuring the security of international sea lanes and the uninterrupted flow of energy is crucial,” participants said.Higher costs throughout the chain
OPEC+ warned that increased transport and insurance costs are gradually being passed on throughout the oil chain. This is increasing the burden on both producers and buyers, even as physical quantities of oil and fuels continue to move.
More expensive and riskier shipping could make supplies more expensive for refineries and end markets. The ministers said the effect was reflected in higher energy costs and additional inflationary pressures.
OPEC+ maintains coordination
The group said it would continue to monitor market conditions and coordinate with governments, industry, the International Energy Forum and the International Energy Agency.
On 4 October, Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman decided to maintain their September production levels for November. The next meeting of the Joint Ministerial Monitoring Committee is scheduled for 29 November.
OPEC has already identified the protection of international sea routes as critical to the continuity of energy supplies. The organization also warned that attacks on infrastructure or disruption of shipping increase market volatility.
Sources: reuters.com