Trafigura’s co-head of oil said the market could see crude hit $150 a barrel this summer and that the total loss of Russian oil would become clearer in April.
“I think you will see record backwardation and you will see $150 a barrel this summer,” Trafigura’s Ben Luckock told the FT Commodities Global Summit, adding that north of $200 was also possible. Backwardation is a market structure where the front month is higher than the following, which can signal tight supplies.
“You’ll know at the end of April what the total loss of Russian oil is. As it stands right now, there’s a vast amount of Russian oil there…Russians have cancelled crude cargoes and stored some (that haven’t sold).”