21 hours ago
(By Oil & Gas 360) – The oil market has spent the past several weeks trading optimism. Prices have retreated from their crisis highs as investors bet that diplomacy, ceasefire extensions, and negotiations between Washington and Tehran will eventually restore flows through the Strait of Hormuz.
Yet a growing number of traders, ****** ysts, and industry executives are warning that markets may be focusing too heavily on headlines while underestimating the physical realities developing underneath.
That concern was reinforced this week when Tom Baker, managing director for Bahrain at global commodities trader Vitol, warned that oil markets may be underpricing the risks ****** ociated with the ongoing Iran conflict. According to Baker, the real challenge may not be crude production itself, but the growing shortage of refined products and the inability of the physical system to recover quickly enough if disruptions continue.
His warning comes as evidence continues to mount that the global energy system is becoming increasingly strained. Iran’s effective restrictions on Hormuz traffic, infrastructure damage across the region, and interruptions to refining and export facilities have already removed substantial volumes from the market.
Vitol estimates that roughly 14 million barrels per day of Middle Eastern supply have been impacted, creating what some market participants describe as the largest supply disruption in modern oil market history.
Yet a growing number of traders, ****** ysts, and industry executives are warning that markets may be focusing too heavily on headlines while underestimating the physical realities developing underneath.
That concern was reinforced this week when Tom Baker, managing director for Bahrain at global commodities trader Vitol, warned that oil markets may be underpricing the risks ****** ociated with the ongoing Iran conflict. According to Baker, the real challenge may not be crude production itself, but the growing shortage of refined products and the inability of the physical system to recover quickly enough if disruptions continue.
His warning comes as evidence continues to mount that the global energy system is becoming increasingly strained. Iran’s effective restrictions on Hormuz traffic, infrastructure damage across the region, and interruptions to refining and export facilities have already removed substantial volumes from the market.
Vitol estimates that roughly 14 million barrels per day of Middle Eastern supply have been impacted, creating what some market participants describe as the largest supply disruption in modern oil market history.
1 day ago
LONDON, June 2 (Reuters) - The oil market is underpricing some risks from the Iran war, global commodity trading house Vitol's managing director for Bahrain, Tom Baker, said on Tuesday.
Iran's effective closure of the Strait of Hormuz and attacks on energy infrastructure including oilfields and refineries, have taken about 14 million barrels of Middle East supply offline, causing the largest oil supply crisis in history.
"Crude can come back online, but from a product perspective, it might be very hard for the system to catch up for the rest of the year," Baker said at the S&P Global Energy Middle East Petroleum and Gas Conference in London.
"The turning point could be when someone really needs those physical molecules and the physical molecules just aren't there to buy."
The Middle East conflict and effective closure of the Strait of Hormuz sent oil prices as high as $126 a barrel, though they have since receded and stood at about $95 on Tuesday.
Iran's effective closure of the Strait of Hormuz and attacks on energy infrastructure including oilfields and refineries, have taken about 14 million barrels of Middle East supply offline, causing the largest oil supply crisis in history.
"Crude can come back online, but from a product perspective, it might be very hard for the system to catch up for the rest of the year," Baker said at the S&P Global Energy Middle East Petroleum and Gas Conference in London.
"The turning point could be when someone really needs those physical molecules and the physical molecules just aren't there to buy."
The Middle East conflict and effective closure of the Strait of Hormuz sent oil prices as high as $126 a barrel, though they have since receded and stood at about $95 on Tuesday.
2 months ago
China and Russia veto UN resolution on protecting Hormuz shipping
By David Brunnstrom
April 7 (Reuters) - China and Russia on Tuesday vetoed a U.N. resolution encouraging states to coordinate efforts to protect commercial shipping in the Strait of Hormuz, calling the measure biased against Iran, while Washington's ambassador to the world body called on "responsible nations" to join the U.S. in securing the waterway.
The 15-member Security Council voted 11 in favor of the resolution presented by Bahrain, with two against - China and Russia - and two abstentions.
U.S. President Donald Tr
By David Brunnstrom
April 7 (Reuters) - China and Russia on Tuesday vetoed a U.N. resolution encouraging states to coordinate efforts to protect commercial shipping in the Strait of Hormuz, calling the measure biased against Iran, while Washington's ambassador to the world body called on "responsible nations" to join the U.S. in securing the waterway.
The 15-member Security Council voted 11 in favor of the resolution presented by Bahrain, with two against - China and Russia - and two abstentions.
U.S. President Donald Tr
11 months ago
1 yr. ago
Formula One leader Oscar Piastri can win another "home" race this weekend, with Italy's Imola circuit on a list that stretches from Melbourne to Shanghai, Bahrain, Monaco, Silverstone and Monza. http://reut.rs/3GZyHnS
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