Shell CEO optimistic about oil price recovery
UK
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, <a href='https://theenergyyear.com/companies-institutions/opec/’>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.
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