- Oil prices are headed for the first weekly loss in two months as uncertainty over the Ukraine crisis, and a possible Iran nuclear deal weighs on the market
- The removal of sanctions on Iran has the potential to add about 1.5 MMBbl/d to the global supply
- Tensions between Ukraine and Russia continue to run high
- “The Ukraine crisis is taking a back seat to the prospect of Iranian barrels flooding the market,” said Stephen Brennock, an analyst at brokerage PVM Oil Associates
- Oil drillers are resisting the temptation to pump more oil as the market rallies (Bloomberg)
- Following recent earnings calls, large independents like Pioneer, Devon, and Continental pledged to limit 2022 production increases to no more than 5%, a fraction of the 20% or higher annual growth rates pre-pandemic
- “Whether it’s $150 oil, $200 oil, or $100 oil, we’re not going to change our growth plans,” Pioneer CEO Scott Sheffield said during a Bloomberg TV interview