Biggest oil trader says crude stockpiles will shrinkBusiness | 16 Sep 2020 3:36 pm
The world’s biggest independent oil trader says global stockpiles of the commodity will keep shrinking, offering a starkly more bullish view of the crude market than some of its rivals, Bloomberg reports.
Vitol Group said inventories have been falling sharply and will continue to decline this year.
Trafigura Group, the second-biggest trader, says the market will go back into a surplus.
Both companies forecast demand to stagnate and foresee a volatile few months before a gradual recovery next year.
Global stockpile growth peaked at about 1.2 billion barrels in early summer and inventories have since been drawn down by about 300 million barrels, Vitol Chief Executive Officer Russell Hardy said. They should drop by a further 250 to 300 million barrels in the last four months of the year, he said.
“You can’t lose sight of the fact that production has been curtailed,” Hardy said in an interview during the Platts APPEC 2020 conference. A lot of stock draws are expected to come from refineries digesting what they had amassed during the frenzied buying of cheap oil, he said.