Austrian Energy Giant OMV Reduces Long-Term Brent Oil Price Assumptions

Austrian Energy Giant OMV Reduces Long-Term Brent Oil Price Assumptions

MOSCOW (UrduPoint News / Sputnik - 21st September, 2020) The Austrian oil and gas company OMV on Monday slashed its long-term Brent oil price assumptions from $75 per barrel to $60 per barrel due to the macroeconomic impact of COVID-19 and the ongoing transition to green sources of energy.

"The oil price expectations for 2022 and 2023 are reduced to now USD 60/bbl from USD 70/bbl and USD 75/bbl, respectively. ... The revised oil price planning assumptions reflect our believe that the pace of transition to a lower carbon world will accelerate," the OMV said in a statement.

The company's forecast for 2021 remains at the level of $50 per barrel, while the 2024-2029 forecast was cut from $75 per barrel to $65 per barrel and from 2035 onward the Brent price is expected to stand at $60 per barrel, the company noted.

OMV has also reiterated its commitment to the Paris Climate Agreement and ensured profitability "in a lower oil price environment."

Brent and West Texas Intermediate (WTI) prices remain at a lackluster level of some $40 per barrel this month even though many economies have reopened after the lockdowns, while worldwide air traffic is slowly resuming. But due to the possible second wave of COVID-19, investors remain cautious about the energy market.