Occidental Petroleum Corp expects global oil supply and demand to rebalance by the end of 2021, its chief executive told the Energy Intelligence Forum.
US crude oil output will grow modestly next year, CEO Vicki Hollub said. Oil demand and prices have tumbled this year as a glut of oil hit the market just before the COVID-19 pandemic swept the globe.
Oil demand has rebounded to around 94 million barrels per day (bpd), but will take some time to return to 100 million bpd. The world will get to peak supply before peak demand, she said.
Occidental acquired rival Anadarko Petroleum last year in a $38 billion bet on rising demand and price that left it heavily indebted as consumption tumbled. The company had about $40 billion in debt earlier this year, but on Wednesday, Hollub said the company had reduced its debt by $7 billion.
Meanwhile, oil prices rose slightly in early trade on Thursday after data showed US crude stockpiles fell last week, adding to 2 percent gains overnight, as OPEC and its allies were seen fully complying in September with their pact to curb output.
US West Texas Intermediate (WTI) crude futures picked up 4 cents, or 0.1 percent, to $41.08 a barrel, while Brent crude futures rose 5 cents, or 0.1 percent to $43.37 a barrel.
Oil markets climbed for a third day despite a resurgence in COVID-19 infections across Europe potentially denting fuel demand.
“The energy markets are certainly marching to their own drummer at the moment,” said Michael McCarthy, chief market strategist at CMC Markets and Stockbroking, adding that recent oil price volatility may have attracted more trader positions.
The American Petroleum Institute industry group said US crude, gasoline and distillate inventories all fell in the week to Oct. 9, according to a report released after market close on Wednesday. – Reuters