The world’s biggest oil trader thinks we may never see $100 oil again

by Will Martin
Business Insider
FEB. 8, 2016

The price of oil might never go above $100 per barrel ever again, and will stay beneath $60 for as long as ten years, according to the boss of the world’s biggest independent oil trader.

In an interview with Bloomberg TV, Ian Taylor, CEO of Vitol Group said: “It’s hard to see a dramatic price increase. You have to believe that there is a possibility that you will not necessarily go back above $100, you know, ever.”

The price of Brent crude, the European benchmark, peaked at around $140 in 2008 before crashing as low as $45 per barrel in early 2009.

It then recovered substantially, and traded around the $100 mark for nearly three years between 2011 and 2014.

However, since summer 2014, the huge supply glut in global markets, driven by OPEC, has forced prices down as low as $28 per barrel. Right now, both major benchmarks are hovering between $32-35 per barrel.

Much has been written about whether oil has hit a bottom, with some major banks and analysts predicting that crude could fall to as little as $10-20 per barrel. Last month, Credit Suisse said that it doesn’t believe oil has bottomed yet. Taylor told Bloomberg that he is unsure of whether oil has hit its lowest point, but he did predict that prices won’t recover beyond $60 per barrel for as much as a decade.

“We really do imagine a band, and that band would probably naturally see a $40 to $60 type of band,” he said. “I can see that band lasting for five to ten years. I think it’s fundamentally different.”

CategoriesUncategorized

One Reply to “The world’s biggest oil trader thinks we may never see $100 oil again”

  1. The might God creation all the things and earth!
    Have set automatic function, if those thing the God created and arranged destroyed his arranged system a recycle will trigger for thousands year for a new freshly Earth he creation!

    Earn a trillion if the only planet can not sustain living no use the trillion!

    Save the planet the oil must reduce with new energy sources! or you prefer trigger the GOD recycle!

Leave a Reply