Shell CEO optimistic about oil price recovery
LONDON, October 7, 2015 – Ben van Beurden, Shell’s CEO, said in a conference Wednesday there are indications of the recovery in oil price. However, a dramatic increase in oil prices could lead to a further production glut, adding to the volatility of the market.
The indicators for price recovery include the demand for oil at the global level, OPEC, the US shale industry and production cost. According to van Beurden, the glut of oil supply resulting from the resilient US shale industry means that a restoring of demand and supply is needed.
“After this happens, Saudi Arabia’s strategy and cohesion within OPEC will remain key uncertainties. If they get it right and find a new balance, prices will recover, although it remains uncertain how fast prices will recover and at what level they will settle,” van Beurden said.