Market Weekly: Sep 18 Sep 22 2017

#11953
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Continental Resources ($CLR) Chairman and CEO Harold Hamm says the U.S. government was far too optimistic with its prediction of more than 1M bbl/day in new U.S. production, which is “distorting” global crude prices.

The EIA’s projection is “just flat wrong” and fails to account for the new discipline among U.S. drillers, Hamm tells Bloomberg, saying this year’s rise is likely to be closer to ~500K bbl/day.

Hamm thinks the government’s outlook has contributed to worries about an oversupply that puts U.S. oil at a steep discount to international crude, adding that once the EIA’s “exaggeration” becomes more clear, prices could rise to $60/bbl from ~$50 now.