Vitol CEO: Pressure on Russian and Iranian oil has led to a shortage in the global market

According to Energy Press, quoted by Reuters, Russell Hardy said at the International Energy Week conference in London: “Despite previous estimates of a surplus in the oil market, we are now seeing a tightening, as Washington’s pressure has led to a reduction in Russian and Iranian oil supplies and increased demand for this strategic commodity from other sources.”

After the restrictions imposed by the United States on buyers of Russian and Iranian oil, the world’s two largest oil exporters have become more willing to sell oil to China. India has also agreed to stop buying Russian oil under pressure from US President Donald Trump.

Hardy said: “Overall demand for non-sanctioned oil has increased, and this has limited the supply of oil in the oil market, while sanctioned oil remains in floating storage tanks on the high seas.”

He added: “Russian oil production has been resistant to sanctions for four years after the beginning of tensions between Moscow and Kiev, but now the country’s oil supply is also declining.”

“The cracks caused by sanctions are emerging and geopolitical conditions are now undoubtedly putting more pressure on the supply side,” said Vitol’s CEO.

Hardy continued: “Traditional buyers of Russian and Iranian oil are now looking to Western or Saudi sources of supply, which has further constrained the real market.”