Petronas sees oil prices at $50-$60 over next three years

A hundred dollar a barrel prices are a thing of the past. This is what Malaysian oil company has said in its freshly put out activity outlook 2018-2020.

Petronas Vice President of Group Procurement, Samsudin Miskon said: “As we approach 2018, the uncertainty in the oil and gas industry remains a topic of constant discussion. It is imperative for industry players to understand key trends as a barometer for the industry.

Petronas has listed three major factors to monitor that are important for the prices to continue improving: OPEC-Non-OPEC production cut compliance, U.S. shale agility, and Sustained healthy level of oil demand growth.

For the past few years, the industry has experienced a slow-down in activities following the drop in oil prices.  Through efforts by OPEC and non-OPEC members to cut production of 1.8 million barrels per day, prices are projected to remain within the range of USD50s – USD60s per barrel.

Petronas has listed three major factors to monitor when it comes to the oil prices: OPEC and Non-OPEC production cut compliance, U.S. shale agility, and sustained healthy level of oil demand growth.

Samsudin Miskon said: “In the lower for longer environment, we have chosen to remain prudent… until we are confident that the current uptrend is sustainable. In our view, the oil price outlook will hover around $50s to $60s per barrel. The majority of analysts agree that >USD100 per barrel is now a thing of the past.”

Offshore Energy Today Staff

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