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Top Oil Traders Say Iran Sanctions Hit Harder Than Expected

  • Four times more oil may be lost than initial estimates: Weir
  • Prices may keep rising as market adjusts to curbs on Iran
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Vitol’s Ian Taylor discusses global oil supplies and expectations for lower oil prices in 2019.Source: Bloomberg
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Sanctions on Iranian oil exports are hitting much harder than most people predicted as the administration of U.S. President Donald Trump takes a tough line on enforcement, said executives from the world’s largest energy traders.

Perhaps 2 million barrels a day of Iranian crude could eventually be lost to the global market, said Jeremy Weir, chief executive officer of Trafigura Group Pte. While other traders including Vitol Group of Cos. and Gunvor Group saw the impact closer to 1 million, that’s still twice as much as most people initially predicted.