Repsol’s long-term oil price outlook aligns with rivals By Reuters

© Reuters.

LONDON (Reuters) – Spanish energy major Repsol (MC:) lowered its oil price () assumptions on Thursday, bringing its long-term outlook in line with most European rivals which have booked writedowns and leaving Equinor as a bullish outlier in the sector.

Repsol took a writedown of $1.5 billion in second-quarter results, after it had already booked 5.7 billion euros ($6.61 billion) in upstream asset impairments last year.

It had previously assumed oil prices might reach $87 a barrel in 2035, adjusting for inflation, but has now revised its headline figure to an average of $59.6 a barrel until 2050 in this year’s prices.

Equinor (OL:) forecasts oil prices to jump to around $80 a barrel in 2030, in 2019 prices.

This month, Eni (MI:) announced a 3.5 billion euro impairment on the value of its assets after revising down its long-term oil price outlook.

That came on the back of Royal Dutch Shell’s (L:) $22 billion writedown last week and BP ‘s (L:) $17.5 billion hit in June.

While break-even prices for new development projects typically lie below future oil price assumptions, these writedowns have raised questions about the risk of stranded assets – or resources that are left underground because they are uneconomical to tap – in the oil and gas sector.

Here is a graphic showing the varying oil price assumptions among European energy majors: https://fingfx.thomsonreuters.com/gfx/ce/yzdvxrjzjvx/Majors’%20oil%20price%20assumptions.png

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function()
{n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘751110881643258’);
fbq(‘track’, ‘PageView’);

by : Reuters

Source link

Capital Media

Read Previous

TikTok tries to distance itself from Beijing, but will it be enough to avoid the global blacklist?

Read Next

Orange et NSIA lancent Orange Bank Africa afin de démocratiser l’accès aux services financiers en Afrique de l’Ouest