Major traders see oil staying above $70/ barrel, $100 not impossible

LONDON (Reuters) – The world’s biggest oil traders said on Tuesday they see oil prices staying above $70 a barrel with demand expected to return to pre-pandemic levels in the second half of 2022.

Oil prices crashed in April last year when the COVID-19 movement restrictions hit their peak with the U.S. crude benchmark turning negative for the first time.

In a stark reversal, the traders do not discount a return to $100 per barrel oil further ahead.

Vitol Chief Executive Russell Hardy sees the oil moving between $70 and $80 a barrel for the remainder of 2021 on the expectation that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) keep supply discipline, even as Iran’s exports may resume if the United States rejoins a nuclear agreement with Tehran.