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Vitol Group Sees Crude Demand recovering

The head of Vitol Group expects the crude demand to come back roaring this year and the next because the world is emerging from the pandemic. Vitol Group is the world’s biggest independent oil trader. The crude demand would increase by 7 million to 8 million barrels a day by the end of 2022 from the current levels.

Russell Hardy, the Vitol Chief Executive Officer, said that the producers will be stretched to meet the surge. He said, “We will need all eight cylinders to get through 2022. We believe $70 to $75 a barrel is an entirely sensible outcome for the third quarter.” For a solid recovery in global petroleum, it is a bullish call to use them after the pandemic caused demand for diesel, jet fuel, and gasoline to collapse.

Vitol Group handled more than 7 million barrels of crude and products a day in 2020. He gave an insight into the fluctuations in global supplies and demand. The global oil demand remains about 3.5 million barrels a day before the pre-pandemic levels. Every year, the consumption should rebound by the end of this year as Covid-19 vaccines continue to be rolled out, lifted lockdowns, and leisure travel resumes.

Hardy said, “The gap is slowly closing as economies reopen and Eastern growth takes us higher.” He also cautioned the recent spike in Covid-19 cases in India and other virus hotspots could derail the recovery. He senses the demand for jet fuel continuing to lag a rebound in other petroleum products.

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