By late July, crude prices again tumbled to January lows. To make things worse, Iran has not resumed its supplies to the global market yet. Brent crude plummeted to $53 a barrel touching the level of last year.
However, experts suggest mixed outlooks for oil price dynamic. OPEC Secretary General Abdullah El-Badri is certain that crude prices have already reached their bottom.
“We see clear signs that the crude market will level out by late 2015. We expect stability on the oil market over the long term... We have all suffered from instability on the market and price volatility,” Abdullah El-Badri stated during his visit to Moscow.
Meanwhile, Royal Dutch Shell has a different viewpoint on further developments. Experts at the Anglo-Dutch oil and gas giant think it will take until 2020 for the price to rise to a mere $90 a barrel. Royal Dutch Shell’s revenues sank 37% in Q2 and 6,500 employees were made redundant.
“Current crude prices could stay low for several years. I can’t predict the future, but our outlook is based on the actual state of affairs on the market. So we forecast no quick rebound in the average global oil price, but only a gradual recovery lasting five years,” warned Ben van Beurden, the CEO of Royal Dutch Shell.
Other large companies are also getting ready for hardship. French Total had to trim investments since January 2015, thus securing stabilization of its finances. Total revenues fell just 2% in Q2 compared to the same period a year ago.
