Oil seen trending at $40-$60
The world’s biggest oil trader has predicted that the price of oil will remain stuck between $40-$60 through coming quarters into 2016.
Bloomberg has reported that Vitol Group CEO Ian Taylor made the prediction in an interview on the basis that a glut in global inventories will not clear until 2017.
The implication is that oil producers and consumers are set to manage lower oil prices for longer than the experience following the global financial crisis, when prices fell sharply, but rebounded within about a year.
Vitol’s opinion is critical because of its size in the global oil trading market. The company handles some five million barrels per day of oil – crude and refined – which Bloomberg reports is sufficient to cover the needs of Germany, France and Spain combined.