Oil prices could soon hit $150/bbl and go higher this year, with demand destruction likely by the end of the year, the CEO of global commodities trader Trafigura said on June 7.
Brent oil futures hit their highest level since 2008 at nearly $140/bbl in early March after major oil producer Russia invaded Ukraine. More recently, the easing of COVID-19 restrictions in China is expected to boost demand and lift oil prices from current levels of around $120.
Jeremy Weir also told the FT Global Boardroom conference that the company’s Russian business was effectively finished, apart from a small amount of refined products moving to Europe, owing to Western sanctions against Moscow over its invasion of Ukraine.
“[Russia] represented roughly 6% of the overall business we did, so it has dropped by that amount...it’s quite significant,” Weir said.
The EU has been widening financial rules on Russian oil sales since the start of the invasion. Trafigura previously said it had reduced its Russian oil business substantially by a May 15 deadline from which cargoes could be sold only to cover Europe's energy security needs.
Last week the EU agreed to stop buying seaborne Russian crude oil, representing about two thirds of its imports, from early December.
Recommended Reading
Hydraulic Fracturing: Solving a Modern Problem with Modern Technology
2022-07-19 - AI-driven software for unconventional assets helps operators finetune completion strategies and democratizes access to accurate production forecasting.
Eni Achieves First Gas from Coral South FLNG Offshore Mozambique
2022-06-20 - On behalf of its partners, Italian oil and gas company Eni revealed that the Coral South Project had safely achieved the introduction of hydrocarbons to the Coral Sul FLNG offshore Mozambique.
QatarEnergy, ConocoPhillips Tie Up for LNG Expansion Project
2022-06-20 - Qatar is partnering with international companies in the first and largest phase of the nearly $30 billion expansion that will boost Qatar’s position as the world's top LNG exporter.
‘Lots of Running Room’ Left in Marcellus Shale—with One Caveat
2022-06-21 - “There’s lots of running room” in the Marcellus Shale for operators developing from an ESG perspective, Randall Wright, president of Wright & Co Inc., told DUG East attendees.
Egypt, Chevron Agree to Explore New East Med Gas Deal
2022-06-21 - Chevron signed an agreement with Egyptian Natural Gas Holding Co. to consider transport, import, liquefication and export of natural gas from offshore Mediterranean fields to Egypt.