Oil market could be underpricing risks, Vitol's Bahrain chief says

Article excerpt

The oil market may be underestimating geopolitical and supply risks, according to Vitol's Bahrain chief, one of the world's largest energy traders. As crude prices hover in the $70, $80 per barrel range, the executive argued that Middle Eastern tensions, potential disruptions to key shipping routes, and tightening spare production capacity pose underappreciated threats. Such risks could push prices significantly higher if even minor supply shocks materialize. The assessment reflects growing concern among major market players that current valuations don't adequately reflect fragility in global energy supplies.