Dutch energy and commodity trader Vitol expects reduced activity in the second half of 2020 on low oil prices, supply cuts, and tepid fuel demand. CEO Russell Hardy said that the slow Q3 would follow bumper profits provided by extreme oil volatility in Q1 and Q2. Previously, Hardy noted that gasoline and diesel demand would unlikely to regain pre-pandemic levels before the fourth quarter of 2021. Vitol believed that oil demand would still grow significantly in Asia, in contrast to BP and others, which projected consumption to have peaked.
The US and India, the world’s major energy consumers, are still battling the coronavirus pandemic, with cases continuing to increase. Meanwhile, a large part of Europe is experiencing new waves of COVID-19 infections, which potentially prompt governments to reimpose lockdowns. Hardy said that with reduced oil supply, traders would unlikely post any increase in trade volume by the end of 2020.
