News Investigators/ International Monetary Fund (IMF) Managing Director Kristalina Georgieva, says high energy prices will likely persist for some time even if the conflict in the Gulf were to end soon.
Georgieva said this on Wednesday in the curtain-raiser speech for the 2026 Annual Meetings of the IMF and the World Bank Group, which will take place from Oct. 12 to 18 in Bangkok.
According to her, Brent futures, for example, now predict high oil prices through 2027.
”So far, the energy price shock has been large but contained, thanks to energy efficiency, fuel-source diversification, reserve releases, supply chain agility, and the usual organic demand and supply response.
”Nonetheless, in spite of a shaky recovery in flows out of the Gulf, oil prices remain around 100 U.S. dollars a barrel, reflecting risks, high transport costs and other factors.
”Add to this a crack spread of about another 100 dollars per barrel due to a global shortfall in refining capacity, and we get retail prices of diesel and other refined products at record highs.”
She added that Natural gas supplies from the Gulf also remain severely impaired, reflecting more limited liquefied natural gas (LNG) transport options for as long as shipping through the Strait of Hormuz remains threatened.
”The disruption is having uneven effects around the world, with Asia and Europe particularly hard-hit.
”Price pressures may build further as countries replenish reserves and demand rises with the approach of the Northern hemisphere cold season,” Georgieva further said.
Xinhua/NAN
