Vitol CEO says it is difficult to predict oil market balance this year
KUALA LUMPUR, June 26 (Reuters) — The head of the world’s largest independent oil trader said on Monday that it has been difficult trying to predict market balances this year because of uncertainty with Russian supply and Chinese demand.
The market is in slight oversupply with Russia beating earlier expectations of a supply loss because of western sanctions imposed on its exports, Vitol’s Chief Executive Officer Russell Hardy said at the Energy Asia conference.
While there were signs in the first quarter that China’s oil recovery is coming, it has stalled due to economic headwinds, he added. (Reporting by Muyu Xu; Writing by Florence Tan; Editing by Toby Chopra)
Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.