ConocoPhillips Chairman Sees Oil Price Floor Rising to $70 a Barrel

Seeking Alpha··USGBNO·Read original
3▲2 ▼0Impact / 5
Summary · why it matters

ConocoPhillips Executive Chairman Ryan Lance said the oil price floor likely will rise to about $70 a barrel, with a mid-cycle price of $65-$70 for the U.S. WTI crude benchmark, speaking Monday at the Energy Intelligence Forum in London according to Reuters. Lance said it could take until 2028 or 2029 for global oil demand to recover from the current crisis, with nothing to stop demand from continuing to grow thereafter. He said the real strategic question for companies like his is where conventional production will come from to satisfy that growing demand, adding that ConocoPhillips is currently more focused on upstream rather than midstream oil investments. Lance also confirmed the company is weighing an unsolicited offer for its North Sea business but has not reached a decision. ConocoPhillips is a major owner and operates the U.K.'s Teesside terminal and holds stakes in several producing fields off Norway, including the Ekofisk field.

Impact on assets 3

Energy▲
ConocoPhillips
COP
± MixedSupplyrelevance

ConocoPhillips chairman forecasts a rising oil price floor and says the company is weighing an unsolicited offer for its North Sea business, with no decision reached.

Others▲
⛏Crude Oil WTI Futures
WTI
▲ PositiveSupplyrelevance

ConocoPhillips' chairman sees the WTI price floor rising to about $70 a barrel and mid-cycle prices of $65-$70, implying tighter conventional supply.

⛏Brent Crude Oil Futures
BRENT
▲ PositiveSupplyrelevance

The bullish oil price-floor view from ConocoPhillips' chairman reflects constrained conventional supply supporting crude benchmarks.