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.
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