The oil prices may fall further when the sanctions against Iran are removed, but it is not necessarily bad news for the Norwegian companies, oil analyst Thina Saltvedt said.
Iran has announced that they will increase oil production by up to one million barrels per day. In addition, the oil they already have on their ships will be sent directly to the market. This will put further pressure on an already covered market.
– It will be very tough for the Norwegian oil industry, where the third round of big layoffs have already begun, says Saltvedt at Nordea Markets. At the same time, she sees possibilities for Norwegian oil service and supply industry, because in Iran is it possible to make money at the current oil prices.
– Iran wants to crank up the production quickly, but not necessarily sit on all the expertise itself. They need Norwegian technology and expertise, and we have lots of rigs and ships standing. Iran have already been waiting for half a year, she says.
On Friday oil prices fell to under 30 dollars a barrel, and the prices are likely to continue declining on Monday morning.
– If you had asked how low they would get one year ago, nobody would have thought that it would be as low as now. They are low, but they can get lower, said Saltvedt.
Source: NTB scanpix / Norway Today