Vitol still selling Russian oil products, to review this after imposition of price cap
ABU DHABI. Nov 1 (Interfax) - Commodities trader Vitol stopped trading Russian crude oil in April, but continues to fulfil existing contracts for oil products, company CEO Russell Hardy said.
As regards 2023, the company is waiting for a decision on a price cap and the participation of European players in this legislation, Hardy said at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).
He estimated that 160 million barrels of oil cannot get into the European market now and are going primarily to the East. This oil is travelling a much longer distance, which is affecting the price, Hardy said.
If further sanctions are imposed against Russian oil, this will affect the price for consumers, he said, adding that a balance needs to be maintained at this stage.
Commenting on the proposal to impose a price cap on oil, Hardy said that by doing so western governments are trying to maintain supply on the market.
However, the level of G7 countries' and companies' participation in trading of Russian crude and oil products has fallen significantly and will fall further, because the nature of price cap legislation will probably lead to many companies suspending this activity, and the oil will find new markets, probably major consumers in Asia, Hardy said.