The global crude market would “welcome” increased oil production from OPEC, Vitol Group Chief Executive Officer Ian Taylor said after attending the Asia Oil and Gas Conference in Kuala Lumpur today.
“We’ve lost Libya, that’s sweet oil that theoretically would be good to replace,” Taylor told reporters. “The markets are in small backwardation, which would suggest there’s just about enough oil. Stock levels aren’t bad, I could not say the market is incredibly tight.”
The Organization of Petroleum Exporting Countries will meet in Vienna June 8 to decide production quotas. Fighting in Libya has cut supplies from Africa’s third-largest producer by almost 90 percent, according to Bloomberg estimates. The nation produces the light, sweet crude favored by refiners.
While demand for oil will continue to increase in the second half of the year, it will be at a slower pace than in 2010, Taylor said. The current oil price is “accepted” by the market, he said.