The world’s largest independent oil trader, Vitol SA, joined rival Gunvor Group Ltd. in expressing caution about the recent surge in crude prices.
“The market is getting ahead of itself in terms of a post-vaccine euphoria but also continued belief in the ability of OPEC to manage supply,” Mike Muller, head of Vitol’s Asian operations, said Sunday in an interview with Dubai-based consultant Gulf Intelligence.
Crude prices have soared since early November on optimism Covid-19 vaccines will restore energy demand and because of deep supply cuts by the Organization of Petroleum Exporting Countries and its partners such as Russia. Yet many major economies remain in strict lockdowns and some are struggling to source enough vaccine doses.
Brent crude futures gained more than 6% last week to $59.34 a barrel, while WTI climbed almost 9%. Each benchmark is now at its highest level in more than a year.
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