Luxembourg-based all-cargo carrier Cargolux will decrease its fuel surcharge on all shipments as of Jan. 27, the carrier announced Monday.
Cargolux will decrease its surcharge per kilo by €0.05, to €0.65 per kilo or the equivalent in local currency. The reduction follows an increase to €0.70 per kilo earlier this month, Cargolux’s highest surcharge since December 2018. That surcharge hike reflects a spike in oil prices at the beginning of 2020 following the news that the U.S. government had killed Iranian Gen. Qassem Soleimani in a Jan. 3 airstrike near Baghdad International Airport (BGW).
Aside from the initial response to news of heightening tensions with Iran, oil prices dropped back down and have since been unaffected. This is attributable primarily to a healthy global supply of oil, propelled by increased U.S. production. In the last decade, America has taken the lead in global oil production, growing its exports from 0.6 million barrels per day in early 2017 to more than 4 million by December 2019, according to data from the U.S. Energy Information Administration (EIA).
This abundant oil supply, coupled with continuing unrest in Iran, could send oil prices plummeting toward US$40 per barrel should the Iranian regime collapse, according to Johannes Benigni, chairman of the energy research institute JBC Energy.
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