Vitol Chief Warns Spot Crude Prices Could Reach $100 Per Barrel
April 10, 2024
The average estimates for the DOE report on the Bloomberg survey is for crude oil stocks to be up 466,000 barrels, gasoline down 1.686 million and distillates down 893,000 barrels.
The API inventory numbers called crude oil up 3.034 million barrels, gasoline down 609,000 and distillates up 120,000.
In its Short Term Energy Outlook, the EIA cut is forecast for world oil demand growth by 480,000 bpd to 950,000 bpd on the year. It also cut its oil demand growth estimate for 2025 by 30,000 bpd to 1.35 million bpd. Total world oil output is forecast to increase by 850,000 bpd to 102.65 million bpd in 2024 and by 1.96 million bpd to 104.61 million bpd in 2025. OPEC oil output is expected to remain unchanged at 26.89 million bpd in 2024 and increase by 410,000 bpd to 27.3 million bpd in 2025.
Israel’s Prime Minister Benjamin Netanyahu, said the country will complete the elimination of Hamas’ brigades, including in southern Gaza city of Rafah and added that nothing will prevent this.
The head of Vitol warned spot crude oil prices could reach $100 per barrel this year if OPEC+ maintains its production discipline and continues to limit crude oil production. He noted that Vitol is expecting global oil demand to increase this year by 1.9 million bpd as a result of gains in demand coming from China, India and increased global air travel.
Fitch Ratings revised its outlook on China’s debt to negative from stable, matching a similar action by Moody’s Investors Services in December.
The propane expectation for today inventory update is to see a build of 780,000 barrels.