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BUZZ-Statoil CEO eyes tighter oil market if OPEC cuts extended
May 22, 2017 / 11:20 AM / 7 months ago

BUZZ-Statoil CEO eyes tighter oil market if OPEC cuts extended

** Statoil CEO Eldar Saetre told Reuters on Monday about the prospect that OPEC and non-OPEC countries would extend the output cuts they agreed late last year:

** “I‘m optimistic that they will come to the agreement.”

** “It will support the direction towards rebalancing (of oil markets), and we see that we are getting to balance, and we expect this balance situation to occur during the second half of this year.”

** “That means that we will start digesting storage globally to a larger extent, but the rebalancing period will go deeply into 2018.”

** “If they (OPEC) didn’t (agree), that would slow down the pace of the rebalancing.”

** “Our basic assumption is that it (the oil price) could be at $75 (a barrel) by 2020, but there is a lot of uncertainty in this rebalancing ... I don’t have a better timeline (of market’s tighten up) than 2020.”

** OPEC and the non-OPEC producers are due to meet in Vienna on May 25. Sources earlier told Reuters that an OPEC panel was considering the idea of deepening the output cuts

** Brent crude on Monday trades at around $54 per barrel

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