Vitol Sees Oil Recovery This Year After Big Slump From Virus - Bloomberg

Vitol Sees Oil Recovery This Year After Big Slump From Virus - Bloomberg:

The oil market is poised for a recovery but will have to first tackle a severe virus-induced demand slump, the chief of Vitol Group said.

The market is facing a 200 million-barrel demand loss in the first quarter, with a 4 million-barrels-a-day decrease in China currently as the virus hits economic activity and restricts travel, Chief Executive Officer Russell Hardy said. While that adds to similarly pessimistic views, including from the International Energy Agency, he said lower supply from Libya and Venezuela and the prospect of deeper cuts from OPEC are easing concerns for the market.


“All of those factors are going to help re-balance the 200 million barrels, which will leave the market in a better position for the second half of the year,” Hardy said in a Bloomberg Television interview. “There’s an OPEC meeting to come in a couple of weeks time and the market’s anticipating some kind of supply response from OPEC.”