EMEA News
Norway: No reason to Think We Will See Oil Prices Last Under $55 a Barrel
According to Norway’s Oil Minister Tord Lien, $40-per-barrel crude oil prices are "unsustainable in the medium-to-long term," Bloomberg reports.
Lien suggests that in the current environment, supply will eventually be reduced and when it does, prices will have to rise.
“There has developed a surplus capacity on the production side and the supply side - the supply side will be reduced in today’s oil prices," he said.
"But $40 oil prices? They are clearly unsustainable in the medium- to long-term.
“There’s no reason to think we will see oil prices last under $55 a barrel but we will have to adjust to lower oil prices."
Norway has reported to have struggled in the current environment of cheap crude, especially as roughly half of its exports are tied to petroleum.
"It’s important for Norway to make the adjustments and prepare for a lower price-range than we were getting used to," Lien said.
Oil prices dropped over 50 percent late last year, and seemed to be recovering when a renewed slide began earlier this summer on oversupply fears.
Earlier this week, it was reported that the oil minister of Iran was advocating for an emergency Organization of the Petroleum Exporting Countries (OPEC) meeting to address the decline.
