OPEC+ warns that energy flow disruptions are driving shipping insurance costs to more than one-third of commodity value.

OPEC and non-OPEC oil-producing countries’ ministers met in Riyadh, Saudi Arabia on October 12 local time to discuss the oil market situation, and reiterated that they will continue to coordinate through mechanisms such as the Joint Ministerial Monitoring Committee (JMMC) to maintain a stable oil market. OPEC+ stated that ensuring the security of international maritime routes and the continuous flow of energy is “crucial.” The countries pointed out that current disruptions in energy transportation have pushed shipping and insurance costs to unprecedented levels, exceeding one-third of the value of related goods, hindering the timely and efficient transportation of crude oil and refined products, and imposing additional inflationary pressure on the global economy. OPEC+ said that elevated transportation costs will eventually be transmitted along the oil industry chain, increasing the cost burden on both producing and consuming countries, and affecting global economic growth. The countries will continue to monitor the situation and cooperate with governments, industry institutions, as well as international organizations such as the International Energy Forum (IEF) and the International Energy Agency (IEA), to improve global shipping conditions.