Vitol’s Middle East senior managers said many Western governments remain
insufficiently aware of tightening global oil supply after the Strait of Hormuz
was blocked. Vitol board member Tom Baker said, “In Europe and the US everyone
seems oblivious and are just carrying on as normal.” Crude has risen toward
$100/bbl while refined products—gasoline, diesel and jet fuel—have posted larger
price gains and volatility, depressing demand in many developing countries,
notably parts of Asia and Africa. Vitol estimates global oil demand will decline
by about 4 mln b/d. Some buyers have delayed purchases hoping the Iran-related
conflict will be resolved and push prices lower.
