The six-month rally in global oil markets could grind to a halt at a price of $50 a barrel as a string of recent production outages comes to an end, according to the world's biggest independent oil trading house.
Vitol’s chief executive Ian Taylor said the market may stall at the $50 mark for the rest of the year after a quicker-than-expected recovery, before creeping slowly up to around $60 by the end of next year.
Earlier this year Vitol predicted a market price of $48 a barrel for crude towards the end of the year but Mr Taylor told Bloomberg that he would “not be surprised” to see the oil market end the year “a tad” higher after a string of unplanned outages in the last quarter helped eat into the glut of global supply.
“There were special factors in the second quarter: Kuwait strikes, Canadian wildfires, Nigerian disruptions, which all helped to reduce supply quite a bit and helped to give the market a little bit of a tighter feel,” he said.Continue this article by clicking right here.
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