Sanford C. Bernstein Neil Beveridge on Oil Outlook

The video discusses the current risk premium in oil due to geopolitical tensions, particularly in Ukraine, and the impact of low oil inventories. It explores the potential effects of Iranian oil returning to the market and the growth in demand as COVID-19 restrictions lift. Predictions on oil prices are made, considering possible Russian actions and US shale production. The video also examines investment trends in the oil industry, highlighting a shift towards short-cycle production and the impact of the energy transition. Finally, it addresses the recovery of oil demand to pre-COVID levels and the long-term outlook for the oil market.

What is one of the main reasons for the current risk premium in oil prices?

• Increased oil production by OPEC

• Geopolitical tensions in Ukraine

• Decrease in global oil demand

• High commercial oil inventories

How could Iranian oil potentially impact the current oil market?

• By reducing global oil demand

• By decreasing oil prices immediately

• By adding a million barrels a day over time

• By increasing the risk premium

What could cause oil prices to exceed $100 per barrel?

• A decrease in US shale production

• A Russian attack on Ukraine

• An increase in OPEC supply

• A decrease in global demand

What is the expected contribution of US shale production to oil supply?

• 3 million barrels a day

• 1.2 million barrels a day

• 0.5 million barrels a day

• 2 million barrels a day

Why is there limited investment in long-cycle oil production?

• Due to high oil prices

• Because of high demand

• Because of the energy transition

• Due to increased short-cycle production

When is oil demand expected to return to pre-COVID levels?

• By the end of 2024

• By the end of 2023

• By the end of 2022

• By the end of 2021

What could be a significant economic impact of oil prices reaching $150 per barrel?

• Significant demand disruption

• Increased global GDP

• Higher investment in long-cycle production

• Decreased energy prices