Insights from Vitol CEO on the Oil Market
Stability Expected in Global Oil Markets
The global oil market is anticipated to remain stable this year, hovering around $80 per barrel, as per Russel Hardy, the CEO of Vitol, a prominent oil and gas trader. He mentioned this at an Energy Institute conference, highlighting the expected peak in global oil demand during the early 2030s.
Comfort in Current Oil Prices
Hardy expressed that the crude oil market is relatively comfortable at the current price levels of approximately $80 per barrel. He noted that the market has significantly strengthened compared to a few years ago, particularly after overcoming challenges like Russia’s invasion of Ukraine and subsequent Western sanctions.
Transition to Low-Carbon Energy
Discussing the shift towards low-carbon energy, Hardy emphasized that the evolution would impact developed economies more than developing nations initially. He cited a reduction in the sales of electric vehicles in developed economies, resulting in a decrease of 500,000 barrels per day in oil demand, equivalent to half a percent of global consumption.
Energy Consumption Trends
Hardy highlighted that European households have curtailed their energy consumption by 10% to 12% this winter compared to pre-Ukraine war levels. This trend underscores the evolving dynamics of energy usage and consumption patterns in response to geopolitical and environmental factors.
