ConocoPhillips sees oil prices stabilizing around $70 as global demand recovers

Yesterday 23:45

By: Azzat Manal

ConocoPhillips sees oil prices stabilizing around $70 as global demand recovers

Oil prices could settle around $70 a barrel as global energy markets adjust to geopolitical risks and changing supply conditions, according to ConocoPhillips Chairman and CEO Ryan Lance.

Speaking at the Energy Intelligence Forum in London, Lance said he expected the lower end of the oil price range to remain close to $70 per barrel, while US crude could average between $65 and $70. His outlook comes as the international oil market continues to navigate geopolitical uncertainty and fluctuations in production.

Despite disruptions and heightened tensions in the Middle East, the global oil supply system has so far demonstrated resilience. Producers have continued to maintain output, helping prevent a major breakdown in international supplies despite persistent risks surrounding key producing regions.

Lance also pointed to the potential for further growth in US oil production if crude prices remain at relatively supportive levels. American output could move beyond 14 million barrels per day, with production potentially approaching 14.5 million barrels per day under favorable market conditions.

The outlook for global oil consumption remains another key factor for producers. According to Lance, demand has recently experienced a period of weakness but could regain momentum toward the end of the decade, with a possible recovery emerging around 2028 or 2029.

Such a recovery would challenge major energy companies to ensure that sufficient supplies are available to meet additional consumption. For large producers, the question is increasingly focused on identifying conventional oil resources capable of supporting future demand while maintaining commercially viable operations.

ConocoPhillips is consequently placing significant emphasis on exploration and production activities. The strategy reflects the company's focus on expanding its upstream capacity rather than directing the same level of investment toward transportation and storage infrastructure.

The company's outlook also highlights the continuing role of conventional oil in the global energy mix. Although investment in renewable energy, electrification and other low-carbon technologies is accelerating, oil remains an important source of energy for transportation, industry and other economic activities.

Market conditions will ultimately depend on a combination of supply growth, consumption trends, geopolitical developments and investment decisions by producers. For ConocoPhillips, maintaining production capacity while preparing for a potential recovery in demand remains a central part of its longer-term strategy.