Investors ‘afraid’ to take position on oil, data chiefs say as tankers face potential Hormuz fees
Investors are hesitant to take positions on oil due to potential new fees for tankers navigating the Strait of Hormuz. Iranian officials have indicated that while there is no official toll, there may be costs associated with navigation and environmental preservation. The uncertainty surrounding oil prices is increasing volatility in the market, particularly with mixed messages regarding negotiations.
- ▪Iranian officials suggest there may be costs for navigation in the Strait of Hormuz.
- ▪About one-fifth of the world's seaborne oil supply passes through this narrow waterway.
- ▪A potential fee of around $1 per barrel could significantly impact oil prices depending on market conditions.
Opening excerpt (first ~120 words) tap to expand
Details about how such a charge may work remain scant. Iranian foreign ministry spokesman Esmail Baghaei told Australia's ABC at a press briefing that "there is no toll" — but said "navigation and the preservation of the ecosystem of the Strait, the Persian Gulf and the Sea of Oman will have costs."About one-fifth of the world's seaborne oil supply passes through the Strait, a narrow waterway between Iran and Oman."People have talked about that being around $1 a barrel for crude oil transit and exiting the Strait," Ernsberger said. He said that a dollar-a-barrel levy is "not a huge tax on trade" in a world where oil reaches $120 a barrel.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at CNBC — Top.
Discussion
0 commentsMore from CNBC — Top
