New York – Here are the latest global economic developments on Monday around 6:30 am after 37 days of conflict in the Middle East:
1. Oil remains cautious
Oil prices were slightly lower in thin trading due to Easter holidays, with investors digesting some encouraging news on the war front in Iran, including the passage of several oil tankers through the Strait of Hormuz.
Around 6:20 am, the price of the Brent North Sea crude oil barrel for June delivery, the benchmark contract, was down 0.77% at $108.19 US.
Its American equivalent, the West Texas Intermediate barrel for May delivery, fell 1.22% to $110.18 US.
“There is clearly a certain amount of goods passing through the strait. This is far from normalizing commercial maritime traffic, but it is definitely a step in the right direction,” said Ole R. Hvalbye, an analyst at SEB, interviewed by AFP.
Press reports suggesting ongoing negotiations between the belligerents were also favoring some calm.
2. Indonesia allows up to 13% increase in airfare for domestic flights
Indonesia announced a 28% increase in fuel surcharge and authorized airlines to implement up to a 13% increase in airfare for domestic flights, whose prices are regulated, said the Minister of Economy, due to the consequences of the war in the Middle East on fuel costs.
3. AirAsia raises prices and reduces flights to mitigate the impact of the Middle East war
The largest low-cost airline in Southeast Asia, AirAsia, announced it would raise ticket prices and reduce flights to mitigate the impact of the war in the Middle East, while emphasizing that demand for flights remains strong.
The Malaysia-based low-cost carrier told the press that around 10% of all its flights had been canceled to date.
4. Sri Lanka: sharp rise in cooking gas prices
Sri Lanka announced a more than 20% increase in liquefied petroleum gas (LPG) prices due to their rise in global markets.
The increase raised their price from 4,630 to 5,700 Sri Lankan rupees (14.6 to 18 US dollars, +23%) at one of the country’s main private suppliers, AFP journalists observed.
5. South Korea to deploy ships to a Saudi port to bypass the Strait of Hormuz
South Korea will send five South Korean-flagged ships to the Saudi port of Yanbu to help establish alternative oil supply routes to bypass the Strait of Hormuz, where traffic is disrupted by the war in the Middle East, a ruling party deputy announced.
6. Ships cross the Strait of Hormuz
A Japanese maritime company announced that an Indian-flagged tanker owned by its subsidiary had crossed the Strait of Hormuz heading to India, becoming the third ship linked to Japan to transit through the strait.
A third vessel belonging to a Turkish shipowner, an oil tanker bound for Malaysia, also crossed the Strait of Hormuz on Sunday evening, Turkish Transport Minister Abdulkadir Uraloglu announced.
7. OPEC+ to further increase production
Saudi Arabia, Russia, and six other OPEC+ members decided on Sunday to once again increase their oil production quotas by 216,000 barrels per day starting in May.
OPEC+ warned that repairing energy facilities damaged by the war is “costly” and will take “a lot of time,” which could worsen global oil supply challenges.
Context: The content contains updates on the economic impact of the conflict in the Middle East, involving issues such as oil prices, airline fares, and gas prices in different countries.
Fact Check: The information provided in the translated content accurately represents the economic developments mentioned in the original text.
