(Bloomberg) -- Gunvor Group’s chairman and co-founder said he’s confident the escalating conflict in the Middle East won’t hit crude supply from the region.
“I’m very confident that this will not have any impact at all on oil supply,” Torbjörn Törnqvist said at a conference in Fujairah in the United Arab Emirates. It “seems the market is more focused on concerns about the lack of growth in oil demand.”
The crude market has been largely unaffected by the tensions in the Middle East over the past year as physical shipments haven’t been hit. Houthi attacks on vessels in the Red Sea in retaliation for Israel’s war in Gaza have only managed to delay some supply as ships take the longer route around Africa.
Even as tensions ratcheted up this week with Israel sending ground forces into Lebanon, Brent crude prices in London fell as much as 2.6% Tuesday.
Oil is trading near $71 a barrel with consumption, particularly in China, still weak. At the same time, Libya is preparing to restore output after its two rival governments reached a deal over leadership of the central bank, according to people familiar with the matter. Lower prices also reflect expectations that OPEC+ will make good on plans to bring back production starting in December.
--With assistance from Anthony Di Paola.
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