Petroplus Chairman: Price Will Mitigate Oil Consumption
Skyrocketing oil prices are likely to curtail demand, a refining industry veteran said Wednesday.
“I think the price is going to mitigate consumption,” Tom O’Malley, chairman of Swiss refiner Petroplus A.G., told an industry conference here.
Price is the biggest single lever moving the market, he said.
A recession, which O’Malley said has already begun in the U.S., would especially lead to reductions in gasoline demand that could impact crude oil prices.
In the U.S., he said he expects a 1% growth rate in oil consumption, barring major impact from a recession, he said.
O’Malley is best known for founding two independent U.S. refiners, Tosco and Premcor.
