Conoco CEO: oil prices ahead of fundamentals
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Ingaborg [2011-05-20]
DETROIT, June 16 - The chairman and chief
executive of ConocoPhillips (COP.N) said on Tuesday that oil
prices had risen faster than the company expected and were now
trading ahead of underlying fundamentals. Speaking on the sidelines of the National Summit, James
Mulva said those prices -- U.S. crude CLc1 fetched $70.47 on
Tuesday -- were good news "with respect to financial returns"
and ConocoPhillips' ability to invest in new equipment and
projects. "We have felt that an oil price between $70 and $80 (a
barrel) is a good balance to promote investment, continue to
replace reserves and keep production up, as well as a balance
with respect to the cost to the consumer," he told Reuters. But Mulva also acknowledged the price run-up --
expectations of a recovery drove crude prices to $73 a barrel
last week, more than double their winter lows -- was "stronger
than we would have expected" and was "a little bit ahead of the
actual supply and demand situation and inventory levels."