Pioneer Natural Resources CEO gives output deal 40 per cent chance
Pioneer Natural Resources Chief Executive Scott Sheffield says he has little hope that OPEC members will agree to a deal to reduce production output, which would ultimately lead to an increase in oil prices.
During a conference call on Wednesday, Pioneer’s CEO said “I give OPEC a 40 per cent chance of reaching an agreement.” He added “and even if they do, everyone will cheat. I have seen this over my 42-year career.”
Oil ministers from OPEC are meeting in Vienna, Austria on Nov. 30 to negotiate a deal that would see the export group cut oil supply.
If the group fails to reach an agreement, Sheffield believes oil prices will stay in the mid-$40/barrel range for much of 2017.
“With regard to oil prices, we are obviously not out of the woods yet,” he said. Sheffield said, adding he did not expect the oil market to rebalance until 2018.
On Tuesday, Pioneer Natural Resources, regarded by Wall Street as being one of the best-managed US shale producers, posted a lower-than-expected Q3 profit.
In trading on Wednesday, the Irving Texas company’s stock fell 6.1 per cent to $169.87, trending with the market as oil prices dropped significantly on news of a buildup of US crude stocks.