Vitol CEO sees global gas market set for reasonably bullish 5-year outlook

Global gas prices are at “extreme levels” due to low inventories and strong demand in Europe and China, and the market is set for a reasonably bullish five-year outlook, said Russell Hardy, chief executive officer of Vitol.

In a pre-recorded interview for the 2021 edition of the annual Platts APPEC conference, Hardy said global oil market has had a “pretty orderly” 2021 thanks in part to supply management by the global producers, but overall demand remained 4 million barrels per day behind the pre-COVID-19 levels of 2019.

Extreme cold weather last winter thinned natural gas stocks in the West and inventories have failed to be rebuilt in time, resulting in record prices near $26 per million British thermal units (mmBtu).