An item from oil news site Rigzone quotes an analyst view that the sweet spot for oil pricing is around US$70 per barrel:

FGE’s Director of Short-Term Global Oil Service & Head of Upstream Oil:

  • “the problem right now is that the world thinks it needs a higher price”
  • “Financial institutions think international oil companies need a higher price to incentivize upstream development, OPEC producers want a higher price to cover fiscal budgets,”
  • “But in reality, over $70 and the cost of energy starts to create hurt [in] the macro picture, while also incentivizing too much supply growth,”
  • “International oil companies can still make good money at $70, OPEC can make their budgets work at $70, and demand everywhere else can cope”
oil price update 17 July 2023