Jordan Times
Sunday, September 23, 2001
Commodity prices go up in aftermath of attacks on US as import costs rise
By Rana Awwad
AMMAN — The recent attacks against the US are expected to result in a slight increase in the value of Jordanian imports and shipping and insurance costs, officials said.According to Mohammad Abu Hammour, Finance Ministry secretary general, the rise in foreign currencies' exchange rates to the dollar would increase the value of imports from Europe. Jordan imported European goods worth JD635.5 million by the end of July.
He added that since most of these imports are bound by already-signed contracts, their value will not suffer much.
Insurance premiums and shipping costs will go up due to the losses incurred by international insurance firms, noted Abu Hammour. He said that the Kigdom's oil bill will remain unchanged if prices return to their pre-attack levels.
Oil prices surged to $31.05 per barrel in the aftermath of the Sept. 11 attacks, but are now lower than before the suicidal acts. November delivery prices are expected to drop to $25.79 a barrel, against $25.92 on Thursday evening.
Jordan receives all its oil supplies of an estimated 5 million tonnes annually from Iraq under disclosed concessionary terms. But the prices of the Iraqi oil are linked to international prices.