Vitol's top trader is focusing on the metals market as global oil demand is predicted to peak in 10 years, according to the CEO's signal.

• Russell Hardy, CEO of Vitol, stated that the company is closely monitoring the metals market due to the predicted increase in global petroleum demand within the next ten years.
• He stated that we are interested in being part of the larger metal markets, specifically steel and iron ore, copper, and aluminum.

Vitol is closely monitoring the metals market due to forecasted global petroleum demand peaking in the next ten years, as stated by Russell Hardy, CEO of Vitol, a leading independent energy trader worldwide.

Hardy stated at the Financial Times Commodities Summit in Singapore on Thursday that he believes the oil business will peak in about 10 years from its current state.

The metals industry will experience significant growth during the electrification phase, while the crude industry may decline, according to the speaker.

He stated that we are interested in being part of the larger metal markets, specifically steel and iron ore, copper, and aluminum.

In April, Vitol acquired two metal traders from Mercuria, while in August, it announced its acquisition of Noble Resources, a Hong Kong-based trader specializing in oil, coal, and metallurgical coke used to make iron.

Clean energy has attracted the attention of energy trading giants, including Gunvor and Mercuria, who are now exploring opportunities in the metals space.

The production of EV batteries, electric vehicles, power grids, and solar panels requires critical minerals such as copper, nickel, cobalt, and lithium, which are essential for the energy transition ecosystem.

The International Energy Agency predicts that copper will experience an exponential demand and potential shortage by 2030, with existing mines and projects under construction only meeting 80% of the copper needs.

Acknowledged Hardy, scaling the metals business to the same size as its energy arm would be a challenging process. The metals market is highly competitive, and the trading house will need to identify its unique selling points and strategies to succeed.

He stated that achieving his 10-year goal is not a priority, and he will not put pressure on himself to be in a specific location within three or five years. However, he emphasized that oil and gas remain crucial business units for the trader.

Europe's energy crisis following Russia's invasion of Ukraine in 2022 resulted in a surge of profits for Vitol in recent years.