The Vitol Group, the world’s largest independent oil trader, expects global markets to continue drawing for the rest of the year, in contrast to its rivals and many analysts, who see the market growing brighter.
Vitol’s chief executive Russell Hardik told Bloomberg in an interview that oil reserves had plummeted by nearly 300 million barrels since the 1.2 billion barrels increase earlier this year, and another 250 million -300 million. Barrel is likely to decline. Published on Wednesday.
Refineries that have bought a lot of cheap oil in the last few months are expected to play a key role in attracting global oil inventions, Hardy told Bloomberg.
A top Vitol official said gasoline demand may decline in winter, but diesel demand may decline, while jet fuel consumption is still poor. “But demand is likely to decrease in the coming months.”
“Things can get a little tricky before they get better, but we are confident that we will get through it and things will improve constantly,” Hardy told Bloomberg.
Vitol looks more sharply at short-term prospects for oil than another major commodity trader, Trefigura, which expects a “supply-heavy” market at the end of the year, as demand recovery stalls by the end of 2020 The list will be created.
The market will deteriorate before it gets better, Ben Lakcock, co-head of oil trading at Trafigura, said at a conference on Monday, as did Bloomberg. Oversupply in the market is reaching a point where chartering tankers are profitable for temporary storage according to Lakcock.
The resurgence of cases of coronovirus in many parts of the world over the next few months will be the main obstacle to global demand for gasoline and diesel, which will recover to pre-epidemic levels by the end of 2021, with senior executives of oil companies and commodity traders Said earlier this week at the virtual Asia Pacific Petroleum Conference (APPEC).
By Tsvetana Paraskova for oilprice.com
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