Crude oil price recovery expected at year-end: Occidental chief

Business Tuesday 26/January/2016 18:23 PM
By: Times News Service
Crude oil price recovery expected at year-end: Occidental chief

Muscat: Crude oil prices are expected to start recovering marginally towards the end of the year, said a top-level official of the US-based Occidental Petroleum Corporation.
“My hope is that oil prices will start recovering during the end of the year. But I don’t expect that we are going to see significant improvements in oil prices in 2016. (Also) may be a slight, not significant, improvement in 2017,” Occidental President and Chief Operating Officer Vicki Hollub, told the Times of Oman in an exclusive interview.
Crude oil prices in the international markets touched a 12-year low recently. Oman Crude (February delivery) was quoted at $24.97 per barrel, while West Texas Intermediate (WTI) traded at $29.62 a barrel on Tuesday.
She said that in view of the crude oil prices, Occidental is trying to adopt a conservative approach. “When we look at the future, we are not expecting to see high oil prices in the next two to two-and-a-half years or so.”
However, Hollub said, as a company “we take a long-term view. This is a cycle prone industry. When the cycle comes, you have to adjust, you have to make sure that you are prudent with the cash you have.”
Hollub also said the plunge in oil prices started with a demand issue, which was complicated by oversupply. The oversupply in the market was from multiple sources, including the Middle East region, the United States and some other parts of the world.
The US energy giant has a substantial portfolio of hydrocarbon assets in the Sultanate, which include the Mukhaizna oil block. Occidental, which has been operating in Oman for more than three decades, is the single largest independent oil producer in the country.