Oil price shock: ConocoPhillips CEO issues price warning – ‘Supply crunch coming!’ | City & Business | Finance
ConocoPhillips’ chief executive Ryan Lance claimed supply shortages and price volatility remained a threat to the market. During a speech on Tuesday, Mr Lance also warned limited capacity among OPEC countries and slow American output gains lie ahead.
Lance unveiled his analysis during the Houston Producers Forum.
His comments came just days after 46th US President Joe Biden was unable to secure an agreement for the OPEC group to boost production in oil following a visit to Saudi Arabia.
According to the Guardian, Brent crude rose by 2.6 percent to $103.88 (£86.91) on Monday.
The rise came after Saudi Arabia’s foreign minister, Prince Faisal bin Farhan Al Saud, quelled speculation over an output increase.
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However, Mr Lance said: “Ultimately, demand will go back to pre-pandemic levels.”
He added: “There is a supply crunch coming.”
Mr Lance also revealed US output was expanding more slowly than hoped.
He said: “The US will grow shy of a million barrels a day this year … and we’ll probably grow close to another million barrels next year. But we start to kind of plateau.”
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