Netherlands-based oil trader Vitol recently warned of trying times ahead in the global oil market as low commodity prices and slowing global growth rates continue to take their toll.

“Current market conditions are challenging. While the market structure favors a physical trader, the absolute price levels and market volatility are causes for caution,” Vitol President and CEO Ian Taylor was quoted as saying.

“This current environment vindicates the extremely cautious approach we have long taken towards risk and debt. We believe it is prudent to continuously review both business lines and asset exposures, and we will manage the business conservatively in these uncertain times,” Taylor continued.

“For us, this means focusing on what we believe we do best—that is moving energy around the world—with a real attention to the careful management of each and every trade,” he noted.

Low oil prices have hurt energy companies across the board. For Vitol, a full-year 2015 revenue of $168 billion represented a 38% decline from the previous year, despite a 14% expansion in total volumes of crude and oil products traded to 303 million tons. Contracted sales volumes in natural gas, power and coal also fell markedly.

Vitol’s downstream assets, particularly its refineries, performed well in 2015. However, broader implications of slowing global growth and a rebalancing of the Chinese economy “are likely to impact parts of the portfolio,” according to Taylor, “and we expect a slowdown in the rate of demand growth in some energy markets.”

“Notwithstanding, we will continue to invest where the appropriate long-term opportunities arise,” he said of the company’s downstream segment.

Meanwhile, Vitol increased its footprint in the storage terminals business last year after acquiring the outstanding 50% share in terminal infrastructure group VTTI from ISC Berhad, which has evolved into a market leader with a gross storage capacity of 8.7 million cubic meters.

Nevertheless, Taylor said that the coming year will remain challenging for the oil sector.

“Demand growth will be in line with long-term averages, but below the high levels seen in 2015. Stocks of crude and products continue to build and these will weigh upon the market. In this context, we shall focus on adding value to our customers and seek interesting opportunities, while remaining mindful of increased risk,” he said.

Bryan Sims can be reached at bsims@hartenergy.com.