#opec-production-pause

#opec-production-pause

After 46 days of rising prices, the cost of both petrol and diesel across the country has finally begun to drop very slightly. Wholesale prices are still lower, so we're hopeful there will be further reductions amounting to several pence a litre in the coming days.

A 'workable system' of transit and shipowner confidence in the security of the transiting vessels is essential. This includes availability of insurance for transiting vessels, facilitating commercial trade financing, and sustained outbound vessel transits through the Strait of Hormuz.

"As we have made clear, we will pursue global maritime enforcement efforts to disrupt illicit networks and interdict sanctioned vessels providing material support to Iran - anywhere they operate. International waters are not a refuge for sanctioned vessels."

The IEA sees global oil demand falling by 80,000 barrels per day this year, compared with a projected year-on-year rise of 640,000 bpd in its previous monthly report.

Refiners will soon start the switch to so-called summer blends, which don't vaporize as easily, to meet air pollution requirements. It's more expensive and time-consuming to create fuel that's resistant to evaporation, explains Aixa Diaz, an AAA spokesperson. What's next: The seasonal cost rise typically starts at the end of February or early March as "spring break season kicks off and refineries start production of summer-blend gasoline," Diaz said via email.

The war has effectively blocked the Strait of Hormuz, the world's most important oil route, since the end of February and cut exports from OPEC+ members Saudi Arabia, the United Arab Emirates (UAE), Kuwait and Iraq.