BAKU, Azerbaijan, October 26. Attacks on Saudi
Arabia’s infrastructure and reduced supplies through the Strait of
Hormuz are putting increased pressure on oil markets, while freight
rates on the Yanbu–Ningbo route have doubled since early
September.
According to a press release from Rystad Energy, the company’s
chief economist, Claudio Galimberti, made this statement while
presenting an overview of the situation in global energy markets
and noting the impact of disruptions in oil supplies, rising
transportation costs, and inflationary pressures on the global
economy.
"The pressure on oil markets stems from both supply disruptions
and rising transportation costs. Attacks on Saudi Arabia’s
infrastructure and reduced flows through the Strait of Hormuz are
limiting supply, while freight rates on the Yanbu–Ningbo route have
doubled since early September, increasing the cost of shipping oil
to Asia,” Galimberti noted.
According to him, a significant drop in diesel prices in the
U.S. is not expected in the near future. As a result, the cost of
energy is becoming one of the politically sensitive issues ahead of
the U.S. midterm congressional elections, which will take place in
November.
“Central banks are also facing a difficult situation: raising
interest rates cannot restore disrupted oil supplies, while rising
energy costs are fueling inflation.
This week's economic data and central bank decisions will
provide an opportunity to assess the resilience of the global
economy amid ongoing disruptions in energy supplies. At the same
time, earnings reports from major technology companies will show
whether investments in artificial intelligence are yielding
sufficient returns," the company reports.
