Global demand for crude oil is continuing to rise but supply growth remains limited and will lead to higher prices later this year, a Pioneer Natural Resources PXD.N executive said.
The impact of recessionary fears on global crude oil also will be offset by stronger Chinese demand, Pioneer Executive Vice President Beth McDonald said at the RBN Energy crude export conference in Houston.
Publicly traded U.S. shale oil producers will continue to focus on shareholder returns over higher output, she predicted, and not provide a source of major volume increases.
Global oil futures LCOc1 were trading on Thursday at $76.50 per barrel after the OPEC+ group of major oil producers agreed on Sunday to maintain existing production cuts through the end of 2024 and Saudi Arabia said it would cut 1 million barrels from its June output.
McDonald said supply concerns have led to bullish oil price forecasts in the second half of this year.
