Though crude oil prices are hovering near $70 per barrel, French supermajor Total said the market for crude oil may be bogged down by chronic uncertainty.

The price for Brent crude oil was marching toward $75 per barrel early Thursday. With U.S. President Donald Trump expected to renege on the Iranian nuclear deal, the market is primed to carry a substantial premium and push Brent even higher.

Brent has traded around $70 since the start of the second quarter in April on the back of an expanding global economy, a rise in demand and work by the Organization of Petroleum Exporting Countries to constrain supplies.

"The environment remains nevertheless volatile with persistent uncertainty around the evolution of global supply," the French company said in its quarterly statement.

The end of the Iranian nuclear deal could take around 1 million barrels per day off the market.

Total's sentiment followed concerns from Schlumberger, the largest oilfield services company in the world. Paal Kibsgaard, the company's chairman and CEO said it's likely the industry will see supply challenges through 2018 "and a significant increase in global exploration and production investment will be required to minimize the impending deficit."

Nevertheless, Total said it was focused on cost discipline. It's targeted an operating expense budget of $5.5 per barrel of oil equivalent production and wants to cut costs by more than $4 billion. It's looking for a break-even mark of $25 per barrel this year.

"Production growth should surpass the 2018 target of 6 percent, thanks to the start-ups and ramp-ups of new projects, as well as the integration of recently acquired assets, supporting the 2016-22 target of 5 percent per year on average," the French company stated.

First quarter production averaged 2.7 million barrels of oil equivalent per day, a record level and more than 5 percent higher than last year.

First quarter adjusted net income was $2.9 billion, up 13 percent from the same period last year.

Related Links
All About Oil and Gas News at OilGasDaily.com

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Halliburton remains committed to Venezuela
Washington (UPI) Apr 23, 2018
Oilfield services company Halliburton said it was still committed to the market in Venezuela, even as its Latin American segment saw quarterly revenue decline. Halliburton recorded revenue of $457 million for the first quarter from its Latin American operations, down 1 percent from the same time last year. The company attributed part of the decline to a drop in activity in Venezuela, which is the target of Western sanctions. "As a result of recent changes in the foreign currency exchange ... read more