Austrian oil and gas company OMV AG has cut its intracorporate oil price forecast, OMV reported. As the company points out, the forecast downgrade is a reaction to the accelerated implementation of the energy transition – the transformation of the global energy sector to low carbon emissions.
In the long-term forecast, the price of Brent crude oil has been reduced from $ 75 to $ 60 per barrel.
OMV has confirmed its forecast for 2021 at $ 50. The forecast for 2022 and 2023 has been reduced from $ 75 to $ 60 per barrel. In the period from 2024 to 2029, it is assumed in the Austrian company, the oil price will be $ 65 (previously $ 75), which is expected to gradually decline to $ 60 until 2035. From 2035 onwards, OMV uses a price of $ 60 per barrel.
The revised forecasts will force OMV to reflect a € 600m after-tax write-off in the third quarter results for the E&P division.