Trafigura Says Weak Demand Pushing Oil Back Into Surplus
- Oil demand stuck at 92% of pre-virus levels: Ben Luckock
- Commodity trading house sees crude oil inventories building
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Commodity trading giant Trafigura Group believes the oil market is about to go back into surplus as the demand recovery stagnates.
“We expect crude stocks to build into the year-end,” said Ben Luckock, co-head of oil trading at Trafigura. “Headline oil prices were a bit higher than they needed to be: $40 a barrel Brent is more sensible, and my gut feeling is that we will drift into the high $30s.”