London October 2 2023: Citigroup Inc. predicts that Brent crude oil will decline to the low $70s per barrel in 2024 as the global market shifts back into surplus due to increased oil production.
According to Citigroup analysts, this is a result of "more oil entering the market," and they believe that higher prices in the short term could lead to downward pressure on prices next year.
Halliburton Co. CEO Jeff Miller expressed confidence that there is substantial support for oil prices, and the oil market will continue to tighten. He discussed the company's commitment to returning cash to shareholders during an interview at the Adipec conference.
Eni SpA CEO Claudio Descalzi, in a Bloomberg TV interview, suggested that the Organization of Petroleum Exporting Countries (OPEC) and its allies are unlikely to deepen their production cuts. Crude prices in London experienced nearly a 10% increase last month due to ongoing supply restrictions, which are constraining the market. Descalzi emphasized that the main challenge for the oil industry is a lack of investments in projects, despite strong demand.
Ministers and leaders from the oil industry are gathering for the Middle East's largest energy conference as crude oil prices approach $100 per barrel. Discussions during the event will focus on whether these prices can be sustained and the future of OPEC+ supply cuts, starting from Monday.
However, this year, the conference is heavily influenced by climate concerns. Delegates at the annual Adipec summit in Abu Dhabi, historically centered around oil, will allocate a significant portion of their time to address the energy transition. This meeting is occurring just two months before the United Arab Emirates hosts the crucial COP28 conference.
Later on Monday, CEOs of major companies like Shell Plc, TotalEnergies SE, and Occidental Petroleum Corp. will discuss their plans for the energy transition. UAE Energy Minister Suhail Al Mazrouei and OPEC Secretary-General Haitham al-Ghais are also scheduled to speak.