by Jennifer Sor
The narrative of the oil market will soon be flipped on its head, according to Occidental CEO Vicki Hollub.
Oversupply will soon ease and the market will be undersupplies, sending prices upward.
Oil could be in a new "supercycle," Goldman Sachs analysts said recently.
All the big fields have been found. So, if you take the 20 largest fields in the world, 97% of the volume from those was discovered before 2000. So we're in a situation now where in a couple years' time, we're going to be very short on supply, so the situation is going to flip,"
Chronic underinvestment in the industry also means oil and other commodities are in a "supercycle," which could push crude as high as $100 a barrel, Goldman Sachs previously estimated.
The effects of OPEC cuts have been muted so far. That's partly due to booming production elsewhere, particularly in the US, which churned out a record volume of oil in 2023, with new records also being eyed for 2024 and 2025.
Source: Business Insider
https://finance.yahoo.com/news/oil-over ... 45586.html