Vitol Group: Crude Prices Can Go Higher or Lower than $100

The current crude prices can go lower or higher than $100 per barrel, with neither movements dominating at present, aside from a longer term trend for slight gains, according to the Vitol Group’s head.

For the first time in almost nine months, the crude futures prices of Brent recently fell lower than $100 and have fluctuated in both directions since then, trading at a crude price per barrel of $100.53 in the latest London trading.

In Abu Dhabi, Mr. Ian Taylor, the Chief Executive Officer of the biggest privately held oil trader in the world, said that he does not see any huge movement in the price of oil during the coming days. He added that nothing is special with a price of around $100, and that it can go slightly lower or higher.

Ali Al-Naimi, the oil minister of Saudi Arabia, also said recently that an oil price of $100 per barrel is reasonable and that (such a price) won’t choke the growth of the world economy. He made the statement when the crude futures price of Brent ended at $108.17 per barrel. Brent is down by 10 percent this 2013 after growing 3.5 percent last year.

Vital is one of a few privately owned commodity trading firms that operate from Switzerland together with Gunvor Group Ltd and Trafigura Beheer BV. The costs for energy firms are increasing with, for example, increased regulatory costs getting into profit margins, said Taylor.

By: Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

Facebook Twitter LinkedIn Google+ YouTube