Ryan Lance, CEO of ConocoPhillips, predicted at the "Intelligence Energy Summit" held in London that the floor price of crude oil in global markets will reach around $70 per barrel. Additionally, the price of the U.S. WTI benchmark will be between $65 and $70 per barrel in the middle of the economic cycle.
Impact of Middle Eastern Conflicts on the Oil Market
Lance stated at the meeting that recent conflicts in the Middle East have put significant pressure on the global oil system. However, he emphasized that this system has not collapsed. According to him, while these challenges are impactful, the market's ability to cope with these pressures cannot be overlooked.
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Outlook for Global Oil Demand
The CEO of ConocoPhillips also pointed out that the improvement of global oil demand from the current crisis may take until 2028 or 2029. This prediction indicates that the oil market still needs a period of time to return to normal. Lance noted that after this date, no factors will hinder the continued growth of demand, which could contribute to the sustainable growth of the oil industry.
Lance also referred to a strategic question for oil companies, saying: "The strategic question for companies like ConocoPhillips is where the growing demand will be met from conventional production sources." This question is particularly important in the current conditions where the oil market faces multiple challenges.
He added: "ConocoPhillips' focus is currently more on upstream oil investment rather than the midstream sector." This indicates a shift in companies' approaches towards developing new resources and optimizing existing processes to meet future market needs.
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