The oil market is vulnerable to price spikes due to low inventories and underinvestment in new oilfields, a senior official at global commodities trading firm Trafigura said on Monday.
While the market sees the fair price for oil at $72 to $88 per barrel, “the markets are probably a bit too relaxed,” Ben Luckock, co-head of oil trading at Trafigura, told the APPEC conference in Singapore.
Brent crude was trading above $88 in Asia trade on Monday.
