Vitol warns oil prices could hit 200 USD per barrel

Vitol CEO Russell Hardy has warned that global oil prices could surge to 200 USD per barrel if shipping disruptions in the Middle East intensify. Speaking at the Intelligence Energy Forum in London, Hardy noted that Western nations have largely exhausted their oil reserves that were previously used to mitigate supply shocks.

The global energy market is currently facing a transition from crude oil and refined product crises to a maritime transport crisis. Traders are struggling with vessel shortages and volatile shipping costs, with price fluctuations reaching margins of 2 to 4 USD per barrel due to geopolitical instability.

Currently, approximately 14 million barrels of oil per day (including 12 million barrels of crude and 2 million barrels of refined products) are being transported out of the Middle East. To mitigate risks in high-tension areas like the Strait of Hormuz, smaller tankers are being used to move oil before transferring it to supertankers in the Gulf of Oman. While current volumes have helped avoid an immediate supply shock, Hardy warned that increased attacks or worsening transport conditions could lead to trapped oil supplies and rapid price escalations.