Daily Management Review

Major independent oil trader expects oil price to rise above $80 in winter


The price of oil may exceed $80 per barrel this winter, says the head of Vitol, the largest independent oil trader. He also expects global oil demand to rise amid the gas crisis.

The world's largest independent oil trader Vitol expects the price of oil to exceed $ 80 a barrel this winter, writes Bloomberg citing the words of the head of the company Russell Hardy. 

According to him, it will be due to the fact that world demand for oil will increase by 500,000 barrels per day. He attributed his forecast to the impact of energy crisis on the market, caused by rising gas prices, which forced consumers to switch to other fuels.

Hardy also testified that such changes may encourage oil-producing countries-participants of OPEC+ to increase their supply.

According to Hardy, Europe's gas reserves in October will be around 78% of normal levels. "People are concerned that we are short of reserves. Gas demand in winter is much higher than summer demand," he explained. Hardy said tight gas supplies have also coincided with increased global demand, with countries such as Pakistan, Bangladesh, India and China looking to use cleaner fuels.

The head of Vitol says that the cost of gas has remained high, forcing customers to switch to alternative fuels. For example, while natural gas sells for around $1200 per tonne, liquefied gas costs around $750 per tonne, he specified.

source: bloomberg.com