The oil market has stabilised beacause the worst fears about shortages of crude, gas and fuel in the wake of Russia’s invasion of Ukraine did not come to pass, Gunvor Chief Executive Torbjorn Tornqvist said.

Crude prices may rise in the second half of the year as Chinese demand returns to the market, the head of the Swiss-based trading company told an audience at the CERAWeek energy conference.

Price caps on Russian oil imposed by the G7 and allies had been effective in keeping supplies on the market, he said.

“I must say I was pretty skeptical when I heard about how that will work, but I must conclude this has been working as intended, meaning Russian oil is flowing, but at a lower price. And that is exactly what is happening.”
Source: Reuters (Reporting by Simon Webb; Editing by Richard Valdmanis)