Critical Supply Warning from Vitol for the Strait of Hormuz and Fuel Market
Drawing attention to the supply constriction in the global energy market, Vitol executive Hardy emphasized that fuel markets are facing a much deeper crisis than crude oil.
Speaking at a conference in Singapore, Hardy, an executive at Vitol, one of the world's largest oil traders, reported that shipments through the Strait of Hormuz are not guaranteed, global inventories are at rock-bottom levels, and fuel markets are facing a deeper crisis than crude oil.
Strait of Hormuz Shipments
Speaking at the Asia Pacific Petroleum Conference held in Singapore, Hardy stated that daily shipments via the Strait of Hormuz reach approximately 10 million barrels.
Stating that 9 million barrels of this shipment consist of crude oil and the remaining portion of various petroleum products, the official emphasized that there is no guarantee this flow will occur every day.
Inventories and Refinery Capacity
Expressing that global petroleum product inventories continue to decline, Hardy noted that there is insufficient refinery capacity to prevent these drops.
Stating that the current situation is quite tight and inflexible, the Vitol official reported that the existing surplus worldwide continues to be consumed.
Deep Crisis in the Fuel Market
It was stated that losses in refined product exports originating from the Middle East and Russia have dragged fuel markets into a much deeper crisis than crude oil.
It was noted that the shipped volume will probably be sufficient to keep the current refinery capacity operational, but risks persist.