Oil & Gas

A recovery in global oil supplies is providing Tanzania with some relief after months of energy market volatility, as increased crude production and the resumption of tanker traffic through the Strait of Hormuz have pushed international oil prices lower. For Tanzania, which imports all of its refined petroleum products, sustained lower prices could reduce fuel import costs, ease pressure on pump prices and help contain inflation across transport, agriculture, manufacturing and other fuel-dependent sectors.

However, the outlook remains uncertain as renewed fighting in the Gulf has driven oil prices higher again, highlighting the fragility of the recovery. While the International Energy Agency expects the global oil market to move into surplus later this year, it warns that continued conflict or disruptions to shipping through the Strait of Hormuz could tighten fuel supplies, raise import costs and threaten Tanzania's efforts to maintain stable inflation and strong economic growth.