Oil
OPEC warns of soaring shipping and insurance costs
Energy ministers from OPEC and allied nations report that maritime transport expenses have exceeded one third of commodity values.
Key points
- Shipping and insurance expenses for energy commodities have risen to unprecedented heights.
- OPEC and non-OPEC ministers state these elevated expenses exceed one third of the total commodity value.
- The ministers highlighted that these transport hurdles add to global inflationary pressures and hinder economic growth.
Rising transport expenses
According to Reuters, energy ministers participating in the Declaration of Cooperation have raised concerns regarding maritime logistics. Meeting in Riyadh on the margins of the International Energy Forum ministerial gathering and the World Petroleum Congress, the officials noted that moving crude oil and related products has become increasingly expensive.
Expenses related to shipping and insurance now surpass one third of the underlying commodity value. The ministers stated that these conditions obstruct the smooth transit of petroleum supplies across international maritime corridors.
Economic implications
Insurance Journal reported that the disruptions and elevated transport costs create persistent financial burdens for both exporting and importing nations. Officials warned that these logistical barriers feed into broader inflationary trends affecting the worldwide economy and dampen overall economic expansion.
To address these challenges, the coalition intends to keep track of maritime developments. The ministers plan to coordinate with public authorities, industry participants, and international bodies to seek improvements in global shipping operations.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
9.5% of world merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
