Refinery Maintenance to Ease Supply Tightness, Says Top Oil Trader

The global oil market could experience some relief in the next two months as refineries schedule end-of-summer maintenance, easing supply tightness, according to Vitol's CEO, Russell Hardy. However, the sour crude market will remain tight due to ongoing production cuts by Middle Eastern OPEC+ members. The scarcity of sour crude, mainly sourced from the Middle East, is impacting complex refineries in India, Kuwait, Jizan, Oman, and China. The tightening market for sour crude in Asia is exacerbated by Kuwait's reduced exports and the production cuts by major sour crude producers like Saudi Arabia and Iraq. This has led to price volatility in the oil market, primarily driven by refining capacity constraints.