Oil traders are recording some of their best results on record, whilst the industry, and many countries, are reeling from the global downturn in the oil price.
The Scot at the helm of oil trading giant Vitol said yesterday he saw signs emerging of a better balance between global oil supply and demand. Ian Taylor refused to speculate on where oil prices may be headed next, adding: “Traders always get these things wrong.” But addressing delegates of the Kazenergy Eurasian Forum in Kazakhstan, he said the market seemed to be settling after months of volatility.
The world's largest oil trader Vitol has bought the other half of storage firm VTTI for $830 million, taking full control of tanks that contributed to its stellar profits amid oil price volatility. Vitol's and other trading houses' profits rose steeply in 2014 due to price volatility and a market structure known as contango, when long-dated prices are higher than prompt prices. Contango encourages oil storage in tanks for the purpose of reselling the commodity at a profit in the future. VTTI has total gross storage capacity of 54 million barrels, including assets under construction, the company said.
Ghana has received $700million in guarantees from the World Bank for its transformational Sankofa gas project, which is claimed will address the country's chronic energy shortage.