A number of the planet’s biggest oil executives recently met up in a London Mayfair hotel for an industry summit. During this summit, Brent crude was fetching £52 per barrel, which is the exact same amount it was trading at one year ago.
Although this figure may not seem all that impressive, $52 is close to a year high, and this fact has helped to buoy producers’ hopes that the oil slump, which has been troubling them since mid-2014, is coming to an end.
Speaking at the annual Oil & Money conference, the chairman of Saudi Aramco, Khalid al-Falih, said:
“We are at the end of a considerable downturn. The fundamentals are improving and the market is rebalancing.”
His sentiments were echoed by the oil execs, investors and traders in London, who have been increasingly optimistic since OPEC came to a provisional agreement to curb output late in September. Since then, Brent crude prices have climbed by 15%, and are up by three quarters since January, when they reached an all-time low of $30 per barrel.
There have been promising signs of an upturn in oil’s fortunes, which has sparked renewed investment in the industry, including a $644m investment in US exploration company Extraction Oil & Gas. However many in the industry are still cautious, worrying particularly about a possible supply slump in the near future. Despite this fear, companies like Fuchs and ExxonMobil, which makes Mobil Unirex N3, are likely to be celebrating the recent upturn in oil’s fortunes,