Oil shipping costs increase significantly
The cost of transporting a barrel of crude oil has risen to more than $20, compared to about $3 a year ago, representing an increase of nearly seven times, due to military escalation in the Middle East and tensions in the Strait of Hormuz. Goldman Sachs attributes the rise to several factors, including a war risk premium estimated at around $7, higher fuel prices by $4, and additional shipping operations involving smaller vessels costing an extra $4. The tensions have worsened shipping conditions in the Gulf, with some operations now using smaller ships to pass through the strait, which increases costs and threatens to keep oil prices high. However, forecasts suggest that Brent prices could fall to around $90 per barrel by the end of the year if these disruptions continue.
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