World's Top Oil Traders Don't Expect a Recovery Any Time Soon

02-Dec-2015

The world’s largest independent oil traders said supplies will overwhelm demand into next year and prices may not rally until 2017, painting a gloomy outlook for energy-rich nations as OPEC gathers to discuss output policy.

Their market view indicates that the 12-member group -- and the oil industry as a whole -- will have to endure a much longer slump than the downturn that followed the 2008 financial crisis, when prices recovered within a year.

"The stock-build will continue to weigh on the market, with prices unlikely to move beyond the current range until well into 2017," said Chris Bake, a senior executive at Vitol Group, the biggest independent oil trader. Benchmark Brent crude has traded between $43 and $65 a barrel over the past six months. (by Javier Blas, Bloomberg)