OPEC+’s decision to cut output this past Sunday surprised traders around the world and raised concerns of a rebound in inflation, but a Texas shale executive predicted the move almost exactly , in January
At a Goldman Sachs Group Inc. conference. in Miami on Jan. 5, sales analyst Neil Mehta asked Pioneer Natural Resources Co. Chief Executive Scott Sheffield about his outlook for the cartel.
“OPEC ministers are understandably frustrated by the recent drop in prices,” Sheffield said, according to a transcript of the event.
“I think it will change,” he said. “If it gets too low, I wouldn’t be surprised if they had another cut. But they have to, they have to wait until February 5th to see the product ban in Russia. They could see what happens with the Covid policy that is 100% invested in China. And then we’ll see what happens in the next 90 days.”
Nearly three months later, OPEC announced it was cutting output by more than 1 million barrels a day, sending Brent futures soaring nearly 8% on Monday before settling just below $85 on barrel
US President Joe Biden will hope Sheffield’s other prediction doesn’t come true. At last month’s CERWeek conference in Houston, he said oil prices would reach $100 a barrel in the fourth quarter.
