NEW YORK: Exxon Mobil CEO Rex Tillerson expects the price of oil to remain low over the next two years because of ample global supplies and relatively weak economic growth.
“People kinda need to settle in for a while,” Tillerson said at the company’s annual investor conference in New York.
In a presentation to investors outlining its business plans through 2017, Exxon assumes a price of $55 a barrel for global crude. That’s $5 below where Brent crude, the most important global benchmark, traded on Wednesday.
It’s about half of what Brent averaged between 2011 and the middle of last year. The price of oil plunged in the second half of 2014 when it became apparent that production was outpacing global demand.
US production was particularly robust, with the increase of 1.5 million barrels per day being the third largest on record, according to a report from BP.
Published in Dawn, March 5th, 2015
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