“Oil prices may still fall and the oil service sector is facing a difficult year,” says Jarand Rystad, one of the world’s leading oil analysts.
– “This is the most dramatic event I have experienced. Then you can think of such events as the financial crisis, Chernobyl and the 1986 oil crisis,” says Rystad to Dagens Næringsliv.
The price of North Sea oil fell 14 percent on Wednesday to $ 24.67 a barrel, the lowest since 2003.
Rystad expects the coronavirus pandemic and the oil price war between Saudi Arabia and Russia to replenish stocks of oil, is forcing a price tag of between $15 and $10 a barrel.
– “Then you have to stop the cranes. We may have to pay to get rid of the oil. But if the oil price gets so low for a year and a half, the best basis for creating a huge oil price increase afterward. The deeper we go, the bigger the recoil,” the oil expert says.
Rystad’s calculation is that it will be tough for Norwegian oil service until a violent surge in 2022/2023.
© NTB Scanpix / #Norway Today