• 4 minutes Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 9 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 17 minutes Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 5 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 10 hours Corruption On The Top: Netanyahu's Wife Charged With Misuse of Public Funds for Meals
  • 16 hours Could oil demand collapse rapidly? Yup, sure could.
  • 2 hours Saudi Arabia turns to solar
  • 4 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 16 hours OPEC Meeting Could End Without Decision - Irony Note Added from OPEC Children's Book
  • 16 hours Gazprom Exports to EU Hit Record
  • 5 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 21 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 21 hours Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 12 hours U.S. Withdraws From U.N. Human Rights Council
  • 9 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 1 min Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
  • 14 hours What If Canada Had Wind and Not Oilsands?
  • 15 hours "The Gasoline Car Is a Car With a Future"
  • 15 hours Sell out now or hold on?
Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

World’s Biggest Oil Trader Questions Its Own Fate

Vitol

Vitol’s chief executive, Ian Taylor, said he expected the shift to electric vehicles and non-fossil fuel sources of energy to shrink the oil industry. Speaking at an event in London, the executive said crude oil demand could peak some time around 2028-2030.

Vitol is responsible for the trade of around 7 percent of global oil, which makes it the biggest oil trading firm in the world. Taylor admitted he is concerned about the company’s place in a new, less oil-dependent, world. An additional cause for worry is the shrinking pool of talent, as more young people opt for a career in technology, he said.

A third cause for worry for one of the world’s top oil traders is the low price of the commodity, although Taylor said that he expected prices to improve to about US$60-65 in the next two to three years. Before that, however, Taylor said, growing U.S. oil exports would continue to pressure international benchmarks in 2018.

The Vitol chief said the international oil price benchmark, Brent, could do with a liquidity boost and he praised plans to add in 2018 a fifth North Sea grade from Norway’s Troll field to the four-grade BFOE basket that makes up the benchmark. Related: The Natural Gas Giant To Challenge Israel

However, Taylor noted, more grades need to join Brent, Forties, Oseberg, Ekofisk, and Troll in order to further improve liquidity. Yet, he said, adding Russia’s Urals blend would not help liquidity because it is loaded from several terminals and the loading programs are inconsistent.

One of the biggest traders of Kurdish oil, Vitol could suffer adverse consequences should Kurdistan attain independence. Indeed, Taylor said he hoped the autonomous region would not split from Iraq – a prospect that is currently distant, as Baghdad takes aggressive measures to cut off Kurdistan’s links to the bigger world after the autonomous region voted for independence in its recent referendum.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • Me on October 06 2017 said:
    "Speaking at an event in London, the executive said crude oil demand could peak some time around 2028-2030."

    Smart guy ... politically correct, yet 10 years out.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News