atans1

Tua kee traders take opposing views on price of oil

In Energy on 15/10/2018 at 6:59 am

Phew that was a quick sharp retracement to around US$81 after a sudden sharp spike to US$86. I’ll be blogging soon on why the PAP govt must be relieved oil is now trading around US$81 than around US$86.

But interestingly last week as the price spiked to over US$86 and then fell sharply  two major oil traders had opposite views.

Ian Taylor of Vitol, chairman of the world’s largest independent energy trader, told the Oil & Money conference on Wednesday he expected prices to eventually fall towards $65 a barrel, arguing he saw no shortage of crude in the market and the early signs of weaker demand.

FT

But

In the opposite corner is Jeremy Weir of Trafigura, Vitol’s long time rival, who said at the same London event he expects to see “three figure” prices before the recent rally is tempered, which has already seen Brent crude gain 50 per cent in the past 12 months to near $85 a barrel.

FT

Btw, fyi, the hedgies are long oil because of the US Iran embargo. And two major oil cos CEOs say that there’s adequate supply for the bear term future.

 

Advertisements
  1. One is already short, the other is already long. In the biz it called “talking your own book”.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: