Total SA is among a growing chorus that sees $100-oil on the horizon. But the French energy giant isn’t thrilled about it.
CEO Patrick Pouyanne sees supportive elements, such as looming sanctions on Iran and disruptions in Venezuela, that are stripping supply from the market and pushing prices back into triple digits for the first time seen since 2014, he said in a Bloomberg television interview.
“I’m not sure it’s a good news” for the global economy, Pouyanne said. “Even for the oil industry, because you know, when price goes too high then you open the door to your competitors” and demand will fall, he said.
Brent crude climbed back above $80 this month for the first time in almost four years as the Organization of Petroleum Exporting Countries signaled it won’t take rapid action to temper prices. Impending U.S. sanctions targeting Iranian oil sales are likely to have a bigger impact on the market than they did last time, BP Plc CEO Bob Dudley said this week.