Vitol executive: Western governments underestimate global oil supply shortages

Vitol Middle Eastern executives stated that after the Strait of Hormuz was blocked, many Western governments lacked sufficient awareness of the global oil supply shortage. Board member Tom Baker said, "Europe and the United States seem to be completely unaware of this and are still operating normally." Crude oil prices are close to $100 per barrel, and gasoline, diesel, and aviation fuel prices have increased in magnitude and volatility, leading to a decline in demand in developing countries such as parts of Asia and Africa. Vitol predicts that global oil demand will decrease by approximately 4 million barrels per day. Some buyers have postponed their purchases, hoping that prices will drop after the resolution of the Iran related conflict.