Vitol CEO Flags China Oil Demand Surge Amid Ongoing Supply Chain Disruptions

Vitol CEO Russell Hardy is calling for investors to pay attention to China's oil demand, which he believes will pick up soon. Speaking at the APPEC conference in Singapore, Hardy stated that the current gap between China's 2025 and 2026 crude imports - around 5-6 million barrels a day - is unsustainable.

This suggests that Chinese buying will accelerate from its current levels, which is a bullish signal for crude demand. However, this positive outlook is tempered by Hardy's prediction of a 1.5 million barrel per day contraction in global oil demand for the year.

The supply side of the market remains disrupted due to ongoing conflicts in Middle East shipping lanes. The Bab el-Mandeb strait disruptions have affected around 2-3 million barrels a day of Saudi oil exports, while approximately 10 million barrels a day of crude and products are still being exported from the region via other routes.

Vitol's CEO also noted that global product stockpiles continue to draw down, indicating that consumption of refined products is outpacing supply even as crude flows remain disrupted. Hardy also mentioned that Russia imported between 500,000 and 600,000 tons of gasoline per month over the summer.