ConocoPhillips predicts higher oil price floor at $70 per barrel

ConocoPhillips Chairman Ryan Lance has revised his outlook on oil prices, predicting a higher floor for crude. Speaking at the Energy Intelligence conference in London, Lance set the new price floor at around $70 per barrel for U.S. West Texas Intermediate (WTI) crude. He also projected a mid-cycle range of $65 to $70 per barrel, signaling stronger market support levels.

Lance’s comments reflect growing confidence in the oil sector’s stability. He suggested that current price levels could push U.S. oil production to exceed 14 million to 14.5 million barrels per day. This outlook reinforces expectations of continued output growth, particularly if benchmark prices remain steady.

The higher price floor and stable benchmark prices may boost investment confidence across the U.S. oil industry. Producers weighing production plans against expected price stability could see this as a positive signal for long-term growth.

Previously, concerns about depleted commercial and strategic oil inventories, along with supply disruptions linked to the Middle East conflict, have highlighted the market’s vulnerability. Rebuilding inventories could take up to two years, adding another layer of complexity to pricing assumptions.