Oil company Equinor maintained its projections of $77 a barrel of oil for 2025 and $80 for 2030, going against forecasts from Shell and BP, which lowered price forecasts this year after the shock caused by the Covid-19 crisis in the markets. For most investors, the state's expectations should be "unrealistically high," DNB Markets said in a report.
However, in an interview with Bloomberg TV, Equinor CEO Eldar Saetre defended the forecasts, saying the industry and markets may be underestimating the pandemic's effect on future oil supply as they worry about the impact on demand. "Covid's situation may impact the demand side in the negative direction, but we also see a potential impact on the supply side that is not being discussed as much." "With less capacity in the industry, less risk appetite in the industry, this could have an even greater impact than we could see on the demand side," he said.
Saetre also added that the crisis caused by the pandemic has affected the exploitation of new resources, and that the capacity of suppliers can also decrease. "Now, any prediction is more complicated than before," he said.