By Zoila Palma: Fuel prices remain elevated around the world despite the recovery of oil shipments through the Strait of Hormuz, as ongoing conflicts, rising shipping costs and disruptions to refinery operations continue to strain global energy supplies.
Gasoline prices in the United States are averaging US$4.36 per gallon, the highest level recorded for this time of year, while diesel prices remain close to the record high set in September, CNN reports.
Although oil is once again moving through the strategic Strait of Hormuz, shipping through the region remains dangerous and expensive. The cost of hiring a very large crude carrier to transport oil from the Persian Gulf to China has surged from approximately US$65,000 per day last year to US$1.6 million per day.
Rising insurance premiums and payments to sailors willing to travel through conflict zones have added further costs, which are ultimately passed on to consumers and businesses.
Energy experts say the crisis has expanded beyond the initial oil supply disruptions linked to the war involving the United States and Iran.
Attacks by Houthi rebels have disrupted shipping through the Bab al-Mandeb Strait, while Ukrainian drone strikes on Russian refineries have affected fuel production.
The high cost of transporting physical oil has also created a significant gap between real-world crude prices and futures market prices.
Experts warn that fuel prices could remain under pressure until geopolitical conflicts ease, shipping becomes safer and global fuel supplies recover.
The post International News: Despite re-opening of Strait of Hormuz, fuel prices in U.S. and elsewhere keep rising! appeared first on Belize News and Opinion on www.breakingbelizenews.com.
By Zoila Palma: Fuel prices remain elevated around the world despite the recovery of oil shipments through the Strait of Hormuz, as ongoing conflicts, rising shipping costs and disruptions to refinery operations continue to strain global energy supplies. Gasoline prices in the United States are averaging US$4.36 per gallon, the highest level recorded for this
The post International News: Despite re-opening of Strait of Hormuz, fuel prices in U.S. and elsewhere keep rising! appeared first on Belize News and Opinion on www.breakingbelizenews.com.