EMEA News
Vitol CEO: Higher Oil Price to Stay Over Medium Term
The head of oil trading firm Vitol believes crude oil could stay above $100 a barrel for a prolonged period.
While oil demand dropped during the global pandemic, the return to more normal living conditions for many has seen a spike in demand with supply unable to keep up, Russell Hardy told Bloomberg.
If travel continues to return to normal, "demand is going to surge in the second half", the executive said.
Several OPEC+ members have experienced under-investment and disruptions and are not in a position to revive all of the output they shut down in 2020, the report said.
In additiion, many companies, from US shale drillers to global supermajors, are focused on giving cash to shareholders instead of growing production.
Bunker prices track crude values fairly consistently and under current market conditions have retained their upward path.
Putting the impact of IMO 2020 and the global pandemic to one side, VLSFO and HSFO bunker "have settled into their respective and consistent tracking of crude prices", Ship & Bunker said in mid-February.
"From May 2020 to date, VLSO has averaged a premium to Brent of 3.9%," according to Ship & Bunker.
