Bernstein's Beveridge On Outlook For Oil

The transcript discusses the impact of the Russian invasion of Ukraine on oil prices, predicting a price floor around $90 per barrel due to market oversupply. It anticipates a potential rise to $120 per barrel next year, driven by demand growth and underinvestment in the industry. The surge in natural gas prices is leading some customers to switch to oil, affecting demand. China's energy demand remains weak due to COVID lockdowns, but growth is expected to resume in 2023. LNG and coal prices in Asia are high, with Europe competing for LNG supply. The energy supply crunch is expected to last into 2023, with relief not anticipated until 2024 or 2025.

What factors have contributed to the current oversupply in the oil market?

• Increased demand and reduced production

• Weaker demand and strategic petroleum reserve releases

• Increased demand and strategic petroleum reserve releases

• Higher production costs and reduced demand

What is the anticipated price of oil per barrel next year according to the forecast?

• $150

• $120

• $100

• $90

What is a significant factor contributing to the potential rise in oil prices next year?

• Decreased travel

• Decreased demand outside China

• Increased investment in the industry

• Underinvestment in long-term supply

What is the equivalent price of LNG compared to crude oil?

• $400 a barrel

• $300 a barrel

• $200 a barrel

• $100 a barrel

How much additional demand is expected from the switch from natural gas to oil?

• 1 million barrels

• 500,000 barrels

• 750,000 barrels

• 2 million barrels

What is causing the high LNG and coal prices in Asia?

• Abundant coal reserves

• Competition with Europe for LNG

• Decreased demand for coal

• Increased supply of LNG

When is a significant increase in LNG supply expected?

• 2024

• 2023

• 2022

• 2025