Vitol's Revenue Falls by a Fifth as Energy Prices Retreat

On 26th March 2024, Vitol, the world’s largest independent energy trader, reported a 20% decrease in revenues, attributing it to the moderation in energy prices. The company also adjusted its forecast for peak oil demand, pushing it back by a few years to the early 2030s. This resulted from the slowing adoption of electric vehicles and the expectation of higher demand from some emerging economies than previously anticipated. The company sustained record profits of $15.1bn in 2022, but did not disclose profits for 2023. Russell Hardy, Vitol's chief executive, mentioned that volatility across energy markets had subsided and prices had retreated from the earlier peaks, leading to a drop in revenues. He also highlighted the reasons behind the adjustment in the peak oil demand forecast. This new forecast is also influenced by the strategy of restructuring trade flows worldwide among physical market participants in the aftermath of the peak oil demand forecast.