SINGAPORE: The fair price of oil is US$72 to US$88 per barrel, a senior official at global commodities trading firm Trafigura says, adding that he sees risks to the upside.
“The markets are probably a bit too relaxed,” Ben Luckock, co-head of oil trading at Trafigura, told the Appec conference in Singapore. There is still some tightness in the market that “leaves us vulnerable” to higher prices, he said.
Brent crude was trading above US$88 in Asia trade yesterday.
The US economy, Luckock said, is “doing incredibly well” and has been resilient through rising interest rates.
“I suspect there’s a little bit more to come,” he said, referring to interest rate increases from the US Federal Reserve to fight inflation.
Luckock added that Russia has a different set of challenges “evacuating their crude products out of the country”, which could prolong tighter supplies. — Reuters
