Dutch Energy Major Vitol Says US-Iran War Erased A Billion Barrels Of Oil
The Swiss-based Dutch energy and commodities major Vitol at a recently held global summit in Lausanne noted that the oil markets had lost up to a billion barrels of oil as a direct result of the US-Iran war.
- Republic Business
- 2 min read
The Swiss-based Dutch energy and commodities major Vitol at a recently held global summit in Lausanne, Switzerland noted that the oil markets had lost up to a billion barrels of oil as a direct result of the US-Iran war.
Meanwhile, the world's biggest independent oil trader noted that the West Asia crisis has also resulted in structural damage to global refining capacity, which cannot be repaired in several months from now even if the Iran war ends.
Further, the company stated that it projects global oil demand to nearly get over nearly 100 million barrels lower than pre-war estimates.
The crude output in Middle East declined by 12 million barrels per day and above 5 million barrels per day of global refining capacity, which has been shuttered, citing the European Business Magazine.
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On the other hand, Vitol booked $2 billion in Q1 profit despite significant losses on wrong-footed derivatives positions.
The report also noted that the billion-barrel figure is not a projection, but a retrospective accounting of supply that had been produced, priced, and expected to reach markets, however, stands evaporated from the global balance sheet.
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The energy and commodities major's recent comments affirm that the market has transitioned from rigidness to structural scarcity.
Vitol trades roughly 8 million barrels of crude per day and posted $343 billion in 2025 revenue — higher than ExxonMobil.
The company's key disclosures are noteworthy.
The Middle East Gulf jet fuel demand has declined by 3,00,000 barrels per day as regional airlines cut schedules, while the Mideast GDP is projected to fall 2% this year on lost tourism and production revenue, citing several media reports.
Notably, the period expected to bring Middle East refineries back online is three to four months long, however, the resumption of the oil wells is expected to require beyond the stipulated period.