Shell CEO Peter Voser has said that the fall in oil prices to just below $100 a barrel is due to a fall in the importance of geopolitical issues and in demand, and he expects further downside to the oil price while supply looks buoyant.
Speaking at the World Gas Conference, Voser told news channel CNBC “Demand is quite clearly softening, but I wouldn’t say it’s collapsing. Today the market has enough oil, more oil than we need…I see (oil prices) softening in the second-half.
“We have seen this (fall in demand) in the past, in 2008, 2009, but it can recover quite quickly.”
Oil prices remain under $100 a barrel after a three month slide from $128 a barrel in March.
Voser’s diagnosis chimes with our report yesterday.
