Trafigura Says ‘Fragile’ Oil Market May Be Prone to Price Spikes
- Luckock says one reason is underinvestment in crude production
- Oil options traders boost wagers on $100 oil on tighter market
Storage tanks, part owned by Trafigura, in India.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
Major commodities trader Trafigura Group says oil prices could spike as higher interest rates and underinvestment squeeze the market.
The consensus view is for prices to remain near current levels, but the market is “more fragile than it looks,” Ben Luckock, the co-head of oil trading said in an interview at APPEC in Singapore. Brent crude is nearing $90 a barrel after OPEC+ heavyweights reduced supply — curbs that could continue further.