Sanctions-Driven Supply Strain Supports Oil Benchmarks, Says Vitol

Sanctions on Russian and Iranian crude are constraining available supply and gradually tightening the physical oil market, according to Vitol CEO Russell Hardy. As traditional buyers pivot toward alternative sources such as Western and Saudi barrels, benchmark prices for Oil – Brent Crude and Oil – US Crude are finding support while sanctioned volumes accumulate in floating storage, highlighting growing dislocation between shadow and transparent markets.

Over the past month, Oil – US Crude has advanced about 8.7%, while Oil – Brent Crude is up a similar 8.7%, reflecting expectations of tighter balances and possible risk premia from sanctions. Daily technicals show a Strong Buy signal for U.S. crude and a Buy bias for Brent, suggesting near-term momentum remains skewed to the upside. Investors can explore more updates, prices, and analysis across global markets at Commodities.