MOSCOW (MRC) -- Vitol's annual traded volumes rose 16% in 2016 to a new record as the world's largest independent energy trader sold more gasoline and diesel in markets such as the United States and Australia, said Reuters.
The Swiss-based company said on Friday its crude oil and product trading rose to 2,597 million barrels last year, or more than 7 MMbpd.
Crude represented 48% of its traded portfolio and volumes also rose 16%. The biggest jump in percentage terms came from gasoline, up 44% and gasoil, up 26%, driven by increasing demand in the United States, Australia and Vitol's growing presence in key African markets.
Vitol's turnover, however, fell to USD152 billion in 2016 from USD168 billion in 2015 as a result of lower energy prices.
"(Global) demand growth of 1.4 million barrels a day exceeded our expectations slightly, but the continued efficiency gains within the exploration and extraction sector ensured the market was well supplied and the impact on price constrained," Vitol said.
The firm also said oil prices in 2016 were no longer in the steep contango market structure that boosted results in 2015. Contango is a market structure in which the price for delivery of a product in the future is higher than the immediate price.
Vitol also said growth in the supply of liquefied petroleum gas (LPG) from US shale was creating new opportunities.
"Our 2016 volumes increased by 131% and, longer term, we anticipate that the ample supply of LPG will facilitate the switch away from solid fuels for cooking in economies across Africa and Asia," it said.
"In addition, we are working with power plants and light industry in Africa to help them move from burning fuel oil and diesel to LPG, a cleaner and more efficient source of fuel."
MRC