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Trafigura: global oil supply shortfall is one million barrels per day

Trafigura

Singapore city, (Business News Report)|| International commodity trade corporation Trafigura said that the global oil supply shortfall is one million barrels per day, due to the Russian-Ukrainian war.

Jeremy Weir, CEO of Trafigura International, confirmed that the oil market has already lost about (2-2.5) million barrels of Russian oil.

He explained that the shortage of diesel supply in the diesel market would be difficult for Latin America and Africa in particular to bear.

Jeremy said that there is a shortfall in the supply of crude of about one million barrels per day, and a shortage of one million barrels per day in oil products, and perhaps a little more.

He said that the diesel market is suffering from a severe shortage that Europe can bear, but it will be difficult for Africa, which depends heavily on diesel to generate electricity.

For his part, Marco Dunand, CEO of Mercuria, said that Russia and Europe will be the biggest losers in the current energy and commodity crisis, while the United States and the Gulf states will benefit.

“I would not be surprised to see a big release from the U.S. and more countries if oil goes to $120 a barrel,” Mercuria CEO Marco Dunand told the FT Commodities Global Summit, adding it could take 3-4 months for these barrels to hit the market.

“It’s going to take 3-4 months to get the barrels,” he said.

In a related context, Tsutomu Sugimori, head of Japan’s largest refiner, INEOS Holdings, said yesterday that the company had stopped buying Russian crude oil after Moscow’s intervention in Ukraine.

He added in a press conference that the Russian oil supplies that the company contracted before the crisis in February are expected to continue to reach Japan until about April, and that there are no problems with financial settlements and shipping.

According to Reuters, Japanese Industry Minister Kōichi Hagiuda called on residents of the capital Tokyo and eight other prefectures, yesterday, to reduce electricity consumption despite unusually cold weather, as the repercussions of a strong earthquake that occurred last week restricted energy supplies.

The Japanese news agency Kyodo reported that the minister’s call came a day after the government issued a warning about the availability of electricity.

The Tokyo Electric Power Company (TEPCO) indicated that there may be a shortage in the area it serves, with some thermal power plants out of service following Wednesday’s earthquake in northeastern Japan.

Hagiuda said in a press conference: It is possible that the government will request “greater cooperation” in the future in order to reduce consumption, according to the developments of the situation.

TEPCO says that since seven o’clock yesterday morning local time, it has received electricity supplies from seven other energy distributors.

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