Vitol loses millions on oil bets as war spikes prices
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- Vitol Group lost hundreds of millions of U.S. dollars on oil bets that went wrong as the Middle East war roiled markets and trapped supply at the Strait of Hormuz.
- Yaoyao Liu, Vitol’s star trader, made bets that diesel would trade at a premium to jet fuel and that Dubai crude would slump relative to Brent crude.
- U.S.-Israeli strikes on Iran and the de facto closure of the Strait of Hormuz caused jet fuel and Dubai crude prices to surge to record highs, undermining Vitol’s expectations.
- Dubai crude hit an all‑time high of $169.75 per barrel, prompting Asian refiners to price U.S. crude against ICE Brent instead of Dubai.
- Jet fuel faced severe shortages because of specialized storage needs and limited global inventories, leading Asian airlines to ground flights and European carriers to anticipate scarcity.
- Ryanair CEO Michael O’Leary warned that supply disruptions could hit Europe in May and June if the war continues.
Why it matters: Vitol’s losses directly hit its shareholders and may tighten margins for the firm, while the surge in jet‑fuel and Dubai‑crude prices strains airlines and Asian refiners, prompting flight cancellations, higher freight costs, and a shift to ICE Brent pricing for U.S. crude.
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