Pioneer Natural Resources CEO Doubts OPEC Will Reach Output Deal
HOUSTON, Nov 2 (Reuters) - Pioneer Natural Resources Co Chief Executive Scott Sheffield has little hope that OPEC members will agree later this month to curb production, a step that would boost low oil prices.
"I give OPEC a 40 percent chance of reaching an agreement," Sheffield said on a conference call with investors on Wednesday. "And even if they do, everyone will cheat. I have seen this over my 42-year career."
Oil ministers from the Organization of the Petroleum Exporting Countries are scheduled to meet Nov. 30 to negotiate a deal on supply cuts.
If OPEC fails to reach an agreement, oil prices likely will stay in the mid-$40 per barrel range for much of next year, Sheffield said.
"With regard to oil prices, we are obviously not out of the woods yet," he said. Sheffield said he did not expect the oil market to rebalance until 2018.
Pioneer, considered by Wall Street analysts to be one of the best-managed U.S. shale oil producers, posted a lower-than-expected quarterly profit on Tuesday. The company's stock fell 6.1 percent to $169.87 in Wednesday trading in line with the broader market as oil prices dropped.
(Reporting by Ernest Scheyder; editing by Grant McCool)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Pioneer Natural 3Q Adjusted Profit Beats Expectations (Nov 01)
- Rising Gas Output Drags Down Shares Of US Shale Leader Pioneer (Aug 02)
- Pioneer Natural Trims 2017 Budget, Cites Weak Oil Prices (Aug 01)
Company: OPEC more info
- OPEC Points To Larger 2018 Oil Supply Deficit As Market Tightens (Nov 13)
- Total Primary Energy Demand to Increase by 35% (Nov 08)
- OPEC Fightback Sees US Stocks Crumble (Nov 07)