Ministers from OPEC member countries and non-member allies in the OPEC Plus coalition warned that the unprecedented rise in transportation and insurance costs for energy shipments has disrupted the smooth transfer of crude oil and petroleum products. This warning was issued on the sidelines of the International Energy Conference and World Petroleum Congress in Riyadh.
Energy Transportation and Insurance Costs
OPEC Plus ministers stated in a joint statement that the costs of transportation and insurance for energy shipments have reached over one-third of the value of the transported goods. This issue is considered a serious barrier to the flow of global energy trade and could impose additional pressures on the energy supply chain.
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According to this statement, disruptions in the energy supply chain will lead to increased inflationary pressures on the global economy. Currently, these additional costs significantly impact oil and petroleum product prices, resulting in price increases in the global market.
Impacts on the Global Economy
OPEC Plus ministers also emphasized the necessity of protecting waterways and international shipping routes and warned that the continued rise in transportation and insurance costs imposes a significant financial burden on energy-producing and consuming countries. According to assessments, these conditions could negatively affect global economic growth and lead to further instabilities in the energy market.
In this regard, OPEC Plus ministers announced that they will closely monitor market developments and maritime transportation conditions and will continue consultations and coordination with governments, energy industry stakeholders, and international organizations to improve the situation. This approach has been emphasized as a preventive measure for crisis management and securing energy resources globally.
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