Total CEO dampens expectation of $70/bbl crude; sets $50-60/bbl target

The head of oil major Total said Monday it could take two years for the world's economy to recover from the impact of the coronavirus pandemic and that the recent bull run in crude oil is unlikely to last.

Speaking to France's BFM Business Radio, Total CEO Patrick Pouyanne said: "I would not bet that oil prices would stay at $70 a barrel. For me, the right price is $50-60 a barrel."

The ongoing pandemic has hammered oil prices down from a high of $71/bbl in January 2020, when news of the virus broke, to a low of $38/bbl in November as demand for road and air transport collapsed.

However, since the approval of several vaccines for use in December, futures in both Brent and WTI have soared.

Front-month Brent crude futures have now rallied to a near two-year high on Monday after Yemen's Houthi forces attacked Saudi oilfields on Sunday, threatening to disrupt supply.

The May '21 contract - the most liquid - hit a high of $71.98/bbl before being beaten back in morning trade. By 11.30 GMT it was valued at $70.15/bbl, broadly flat on Friday's close.

Front-month crude futures were last this high in May 2019.