Oil Price Forecast - Feb 23

[dan_s]

Note below is from our "spies" at Bloomberg:

Pioneer Natural Resources Co., one of the biggest US shale drillers, expects global oil prices to climb to
more than $100/bbl by the end of the year due to rising demand from China and a lack of supply growth.

Chinese consumption “is picking up significantly,” Chief Executive Officer Scott Sheffield said in an interview with
Bloomberg TV. US supply growth will be 400,000 barrels a day this year, down from 650,000 barrels a day in 2022 due to “lower
productivity,” he said.

Still, the US will probably ramp up slowly to reach its pre-pandemic record oil production in the second half of next
year (2024), Sheffield said.

Brent crude has dropped by a third to just over $81 a barrel since June due to economic slowdowns around the world
caused as central banks battle inflation. But Chinese demand is rising and some analysts are concerned that a lack of supply
growth outside of OPEC could cause prices to soar once again over the coming months.

Saudi Arabia and the United Arab Emirates are the “only two countries in the world” with the capacity to ramp up production
significantly, Sheffield said. If the world reaches 102 million barrels a day of demand as major forecasters are predicting,
then “we do not have the supply,” he said. “That’s why a lot of people are predicting we may have much
higher oil prices,” he said.