"Could We Go Above $100/bbl, Absolutely Yes": Energy Aspects on Oil Prices

Energy Aspects founder and director of research Amrita Sen on oil markets in her latest interview on CNBC:

• “The reason we are here today is definitely driven by demand and of course OPEC policy. I would say definitely that OPEC+ is firmly in control of the market. It’s managed to draw down inventories, pretty much everything we’ve built over the last year.” Sen said.
• “Saudi are cautious about bringing barrels back because they are concerned about a slowdown in the world economy, US led, but potentially even China. Demand concerns is what is driving most of the supply policies right now.” Sen added.
• “Prices are high enough for US production to grow, whether its $80 or $90/bbl is immaterial. The challenge for US production is from shareholder pressure and the best quality acreage for oil having been drilled and you are starting to see slowing production growth in a lot of basins outside of the Permian. Next year we expect to see Permian growth to slow quite materially regardless of price.” she said.
• “Calling $100/bbl when prices are at $95/bbl is hardly a call, could we go above $100/bbl, absolutely yes and we do have a lot of positive financial flows right now that should support prices to keep going up – especially given fundamentals are so tight.” Sen Said.
• “Demand will slow down next year but not a full-blown recession, more like a mild recession in the west.” Sen concluded.