Azernews.Az

By Bloomberg

The world’s biggest independent oil trader said crude prices could resume a slump that saw them fall 61 percent between June and January, as unrelenting growth in U.S. output leads to a “dramatic” build in the nation’s stockpiles.

The oil market seems slightly oversupplied and another downward move is possible in the first half of this year, Ian Taylor, chief executive officer of Vitol Group, said in an interview at a conference in London on Tuesday. There are no signs of slowing U.S. output even as the country’s drillers idle rigs, he said.

Brent crude, a global benchmark, has rallied 28 percent from its low point this year. It’s still down by half from last year as the U.S. pumps the most oil in three decades and OPEC responds by maintaining its own output to keep market share.

“The market looks a little bit long in the first half of the year,” Taylor said. “We think there are going to be quite dramatic builds in stock for the next few months.”

The oil market will “move into balance” in the second half of this year, Taylor said.

Vitol trades more than 5 million barrels of crude and fuels each day, according to data on its website.