FUJAIRAH, UAE, Oct 1 (Reuters) - Trading firm Gunvor's CEO is confident the conflict in the Middle East will not impact oil supply, he said on Tuesday, adding that current prices showed the market was more concerned about soft demand.

"I'm very confident that this will not have any impact at all on oil supply," Torbjörn Törnqvist said, when asked about rising tensions in the Middle East.

"We have a situation around the Red Sea, Yemen, but by and large it's more like a nuisance, but not really disruptive in any way," he told the Gulf Intelligence Energy Markets Forum in Fujairah, adding the market was more worried about weak demand.

Brent crude prices fell by more than 2% to around $70 on Tuesday as the prospect of higher supply and tepid global demand growth outweighed fears over escalating conflict in the Middle East and its impact on crude exports from the region.

Törnqvist said the oil market had enough spare capacity and the demand outlook was looking weak, decreasing volatility. "Things are normalising," he added.

He said that producer group OPEC+ was facing a dilemma whether to defend its market share or take steps to support falling oil prices.

The Organization of the Petroleum Exporting Countries and its allies led by Russia, together known as OPEC+, are scheduled to raise output by 180,000 barrels per day in December, having delayed the planned increase by two months.

A panel of top OPEC+ ministers called the Joint Ministerial Monitoring Committee is scheduled to meet on Oct. 2 to review the market and is not expected to change policy.

Törnqvist said demand growth for 2025 was looking modest and not enough meet growing non-OPEC supply. Profit margins for oil refining were also looking weak, he added, as new and efficient refining capacity comes online. Meanwhile, demand for diesel, gasoline and jet fuel in top oil importer China has plateaued, he said.

Sign up here.

https://www.reuters.com/business/energy/gunvor-chair-says-mideast-conflict-wont-hit-oil-supply-demand-concern-2024-10-01/