Top Oil Traders Turn Bearish on Prices, Seeing Oversupply
- Gunvor chief says the industry is drilling too much oil
- OPEC policy will increase supply as US output keeps growing
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The mood at Houston’s big annual oil and gas get-together has been upbeat on the prospects for the industry under a fossil fuel-friendly Trump administration. But there’s a significant catch: some of the biggest oil traders are getting more bearish on the outlook for crude prices.
While they don’t see the prospect of a crash, top traders including Vitol and Gunvor said prices could grind lower as supply starts to outstrip demand. The OPEC+ group of producers has begun releasing additional barrels into the market, the US will continue to add production — albeit more slowly than in recent years — and South America is also growing.