Transport: Will rising oil prices impact freight rates?
At the beginning of this week, Brent's barrel exceeded the bar of USD 70, regaining its pre-pandemic level and thwarting prognosis: the experts predicted that in 2021 it would be around 50-60 USD/barl (cf.International freight: what about transportation costs in 2021?).
As the economic recovery drew up oil consumption, OPEC members and Russia met in early March to discuss thepossible increase in production quotas. As world supply is currently lower than demand (-1 million barrels/day), there is a great temptation for countries exporting crude oil to open the valves... but there are divergent views.
While Iraq, Nigeria, Algeria or Russia, very marked by the recent fall in prices, are in favour of a surplus of production to compensate for revenue losses, Saudi Arabia remains timid in a context of economic recovery that it still considers fragile...
The 13 OPEC countries and their 10 allies have finally decided to join the Saudi authorities in keeping quotas until 7 April 2021. With this decision, analysts are now considering a barrel that can quickly reach 75 USD.
To go further...
- Sales Administration (SDA) Subcontracting Export
- Import/export flow management (air & maritime)
- Diagnosis of international logistics flows
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