Accelerating crude exports through the Strait of Hormuz aren’t translating into higher production of a dirty shipping fu | Hanami
Accelerating crude exports through the Strait of Hormuz aren’t translating into higher production of a dirty shipping fuel, according to a top Vitol Group executive, tightening supplies and sending prices soaring.
The Middle East conflict has reduced fuel oil supply from the Persian Gulf, including from Iran, by 800,000 barrels per month, while Ukrainian attacks on Russian refineries have cut supply by 1 million tons per month, Vitol’s Asia head Kieran Gallagher said at a conference in Singapore this week.
“Many are looking to increased crude flows through the Strait of Hormuz as a silver bullet, but more crude does not necessarily mean more high-sulfur fuel oil,” Gallagher said at Sibcon. “Refining margins are exceptionally strong and refiners have been maximizing throughput to capture those returns,” he added, referring to refiners prioritizing other products such as diesel.
#oott bloomberg.com/news/articles/…