Vitol Warns Oil Could Reach $200 as Tanker Bottlenecks Choke Middle East Exports

Crude oil prices could surge to $200 per barrel if ship-to-ship transfers around the Strait of Hormuz face disruption, according to Vitol CEO Russell Hardy. Persistent Middle East conflict has forced Persian Gulf exports into an inefficient shuttle and transfer system in the Gulf of Oman, tying up global fleet capacity. Middle East outflows stand at 14 million barrels per day, down from pre-conflict levels of 20 million bpd. Meanwhile, average crude tanker earnings have reached an unprecedented $500,000 per day, and shipping costs from Saudi Arabia to Rotterdam have surged from $2 to over $35 per barrel.