Americas News
Vitol: Oil Stocks Will Dramatically Rise In Near Future
Vitol S.A., the world's largest oil trader, is predicting a "dramatic" rise in worldwide crude oil stocks over the next few months, Reuters reports.
"While the rig count is going down, we really don't see production coming down ... We see a dramatic build in stocks in the next few months," said CEO Ian Taylor at the International Petroleum Week conference this week.
Supply from shale gas production in the U.S. is expected to grow, while weak demand is expected to persist.
Taylor also predicted that the market would start to balance in the second half of the year, though prices aren't forecasted to improve by much due to the sheer glut of supply.
Crude prices have rallied in recent weeks on news of decreasing rig counts and positive economic indicators in the U.S.
