Despite Economic Challenges, Top Oil Dealers Expect Demand to Remain Stable

Top oil traders at Tuesday’s Argus European Crude Conference in Geneva stated that economic headwinds had yet to seriously undermine global demand for oil.

Oil prices have dropped by about a quarter in the previous three months due to recession worries, but predictions from senior executives of the world’s leading commodities trading firms may reinforce the argument for more resilient oil prices.

Saad Rahim, the chief economist of Trafigura, has indicated that “all the numerous elements say, yeah, we may be headed into a downturn,” but that it would be shorter and shallower than many predict.

Oil exporters in the OPEC+ alliance may adopt the other stance and increase output this week in response to the plummeting oil prices and months of extreme volatility that have scared the market.

Top Oil Dealers Expect Demand to Remain Stable

Gunvor Group (GGL.UL) worldwide head of market research and analysis Frederic Lasserre reported stable demand and predicted a brief, severe economic downturn.

“According to recent numbers, oil demand is holding steady. While we had hoped for some demand destruction, it never materialized. Subsidies were available in some nations, though. Indeed, we were taken aback “It was his words.

As the transition from gas to oil quickens in Q4 and Q1, Lasserre said, we predict a noticeable impact on gas consumption.

Rahim and Lasserre predicted that by the end of 2019, the price of a barrel of Brent crude oil will remain over $75.

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