The 13% drop in Brent overshadows the potential for a drop in supplies in the coming months
Oil prices have fallen to levels that do not fully reflect the risk of disruptions to Russian exports or the ability of China to keep the coronavirus pandemic under control, according to the world’s biggest independent crude trader.
“Oil feels cheaper than most would’ve predicted,” Mike Muller, Vitol Group’s head of Asia, said on Sunday in a podcast produced by Dubai-based consultant and publisher Gulf Intelligence. “Oil prices could be higher given the risk of disruption of supplies from Russia. But people are still lost figuring out those numbers.”
“I happen to be in the camp that thinks China will continue to suppress this,” Muller said. “The Chinese are certainly making a good fist of arresting it.” There is also less chance of the 2015 nuclear agreement between Iran and world powers being revived in the coming months, according to Muller. A deal would limit Tehran’s atomic activities and lift US sanctions on its energy exports, enabling it to ramp up oil production.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
US allies agree to tap emergency oil reserves againUS allies agreed on Friday to tap their emergency oil reserves again in a bid to calm crude prices that have soared following Russia's invasion of Ukraine.
Read more »
Will Biden's plan to tap US oil reserves reduce gasoline prices?Biden's announcement Thursday prompted an immediate slump in oil prices, but the crude market was choppy on Friday.
Read more »
Red Cross will try Mariupol evacuation again as Russia moves focus to southeast citiesTens of thousands trapped with scant access to food and water in besieged port of Mariupol, Moscow’s main target
Read more »
US allies agree to tap emergency oil reserves againUS allies agreed on Friday to tap their emergency oil reserves again in a bid to calm crude prices that have soared following Russia's invasion of Ukraine.
Read more »
Missiles hit near Odesa as new Mariupol evacuation bid plannedRussia says it destroyed an oil refinery used by the Ukrainian military
Read more »
Will Biden's plan to tap US oil reserves reduce gasoline prices?Biden's announcement Thursday prompted an immediate slump in oil prices, but the crude market was choppy on Friday.
Read more »