February 06, 2023 15:42 GMT
Vitol Expects Product on Water Build from Sanctions
The G7 price cap on Russian oil products will likely lead to "on-the- water stock buildup" according to Mike Muller the head of Vitol Asia, as buyers, sellers, insurers, shipowners and banks await clarity on the legality of dealing with these flows..
- "There will be on-the-water stock build to the extent the uncertainty remains over what aspects of the supply chain are going to feel the pinch," he said.
- "The world is going to have to realign and redirect its refined products that come out of Russia from the Baltic and the Black Seas all the way to Asia: that is a much, much longer voyage that will see a phenomenal stock buildup on the water which accounts for or takes away the best part of a whole month's worth of exports and that's another form of demand," Muller added.