oil industry: Citi expects Brent to plunge to low $70s next year

Ministers and oil industry chiefs are gathering for the biggest energy conference in the Middle East as crude heads toward $100 a barrel. Whether prices can hold at these levels and the outlook for OPEC+ supply cuts are among topics that will be discussed from Monday.

But this year, climate is looming large over the forum. Delegates at the annual Adipec summit in Abu Dhabi, which has been dominated by oil in its long-running history, will devote a lot of their time to the energy transition. The meeting comes just two months ahead of the United Arab Emirates also hosting the crucial COP28 conference.

Chief executive officers of Shell Plc, TotalEnergies SE and Occidental Petroleum Corp., among others, will later Monday discuss plans for the energy transition. UAE Energy Minister Suhail Al Mazrouei and OPEC Secretary-General Haitham al-Ghais are also scheduled to speak.

Citi Says Oil to Collapse to Low $70s in 2024
Brent crude will collapse to the low $70s a barrel next year as the global market swings back to a surplus, according to Citigroup Inc. The shift reflects “more oil coming into the market,” analysts including Ed Morse said in a quarterly report.

“Higher prices in the near term could make for more downside for prices next year,” the Citi analysts said.

Oil Markets Will Continue to Tighten, Halliburton Says (9:18 am)
There’s a lot of support for oil prices and the market will continue to tighten, Halliburton Co. Chief Executive Officer Jeff Miller said in a Bloomberg TV interview at the Adipec conference.The company is returning cash for our shareholders, he said.

The Organization of Petroleum Exporting Countries and its allies are unlikely to deepen their production cuts, Eni SpA CEO Claudio Descalzi said in a Bloomberg TV interview. Crude prices in London rose almost 10% last month as ongoing supply curbs squeeze the market.

A lack of investments in projects is the main issue for oil, while demand remains strong, Descalzi said.

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