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Vitol's 2018 volumes rise, sees oil demand growing for 15 more years

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Vitol's 2018 volumes rise, sees oil demand growing for 15 more years
FILE PHOTO: A sign is pictured in front of the Vitol Group trading commodities company building in Geneva October 4, 2011. REUTERS/Denis Balibouse/File Photo   -   Copyright  Denis Balibouse(Reuters)
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By Julia Payne

LONDON (Reuters) – Vitol cemented its position as the world’s largest oil trader in 2018 and said it saw oil demand rising for at least for another 15 years, despite global attempts to expand green energy.

The firm, run out of London, said its traded crude and products volumes rose to 7.4 million barrels per day (bpd) last year. In 2017, it said its volumes were 7.2 million bpd.

Total oil volume was 357 million tonnes, up slightly from 349 million tonnes the previous year, it said in a statement.

Crude continued to represent the bulk of those volumes, rising to 3.8 million bpd from 3.6 million in 2017. On the products side, gasoline volume rebounded by 30 percent to 44 million tonnes while fuel oil and naphtha declined.

Its traded liquefied natural gas volume rose to 7.8 million tonnes in 2018, up from 7.4 million.

Turnover increased on the back of rising oil prices to $231 billion last year, up from $181 billion in 2017. Vitol did not disclose its net profit.

The Financial Times said on Monday the firm’s net income was $1.7 billion (1.3 billion pounds), excluding a $200 million hit for currency and depreciation, compared with $1.5 billion in 2017.

Vitol said it recognised the trend towards alternative energy sources and was investing in technologies that may form part of the energy transition.

“We anticipate that oil demand will continue to grow for the next 15 years, even with a marked increase in the sales of electric vehicles, but that demand growth will begin to be impacted thereafter,” it said.

The year was also marked by raising cash from major assets, namely Vitol’s downstream businesses Viva Energy Australia and Vivo Energy that were both listed.

The firm also completed the acquisition of Noble Group’s oil business, increased its stake in storage firm VTTI to 50 percent and bought a 50 percent stake in Brazilian retail network Rodoil.

A major upstream investment in Nigeria is expected to close later this year, the company said. Vitol is part of a consortium that agreed to buy Petrobras’s interests in two major Nigerian oil blocks that produce around 370,000 bpd for $1.41 billion.

Oil and gas production in its Ghana interest was ramping up to 85,000 bpd, it said.

(Reporting by Julia Payne; Editing by David Holmes)

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