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Oil Prices Soar as Global Supply Tightens, COMAC Warns

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Brent crude prices have surged by more than 75 percent this year, with refined petroleum product prices rising at an even faster rate, the Chamber of Oil Marketing Companies (COMAC) has disclosed.

According to COMAC, diesel has come under additional pressure due to the ongoing Russia-Ukraine war and uncertainty surrounding measures by the United States to contain record fuel prices.

The Chamber noted that physical oil markets are also tightening significantly, as the Iran war has reduced the availability of Very Large Crude Carriers (VLCCs), pushing global shipping rates to record highs.

“Despite renewed negotiations, market fundamentals are becoming more bullish. Supply pressures have intensified, with strong demand for prompt barrels and rising fuel prices as global refinery capacity remains constrained,” COMAC stated.

The development points to sustained pressure on fuel prices at the pumps in the coming weeks, as global supply chain disruptions, geopolitical tensions, and constrained refining capacity continue to drive up costs in the international oil market.

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