Around 14 million barrels per day leaving Middle East, Vitol CEO says
USO•Around 12 million barrels per day of crude and 2 million bpd of refined products have left the Middle East on tankers in the past 7 to 10 days, Vitol CEO Russell Hardy said. He said oil could reach $200 per barrel without those flows.
1. Oil flows support markets
Around 12 million bpd of crude and 2 million bpd of refined products have left the Middle East on tankers in the last 7 to 10 days, Vitol CEO Russell Hardy said. He said flows of 10 million to 14 million bpd are helping keep energy markets in balance going into winter, with Western inventories largely drained. “Without it, you do have that $200 per barrel scenario,” Hardy said.
2. Shipping and fuel pressures
Hardy said shipping costs have surged and created uncertainty, while tightness in refined products markets is expected to continue into winter. He cited damage to Russian infrastructure and the loss of five months of refining runs in the Middle East as reasons the world is short of refining capacity. The G7 agreed last week to release 100 million barrels of crude and diesel from strategic reserves through the International Energy Agency; Hardy said diesel releases would provide some relief in Europe, but details on volumes and sources were still needed. Brent crude traded around $98 per barrel on Tuesday, and European diesel futures held a premium of around $70 per barrel to crude futures.
