Norway Cuts Oil Price Forecasts for 2014, 2015
OSLO, Aug 23 (Reuters) – Norway's government is cutting its projections for oil prices by 4 percent for next year and 11 percent for 2015, reflecting higher supply and lower demand from the world's two biggest economies, its prime minister said late on Thursday.
The Nordic country is the world's seventh-largest oil exporter. It can use up to 4 percent of its oil and gas revenues in its national budget, so it runs oil price projections to establish how much money it can count on.
The government now expects the average per barrel price for oil to fall to 600 crowns ($98.4) in 2014 from its earlier view of 625 crowns. It expects prices to drop further to 535 crowns in 2015.
"There is growing uncertainty about oil prices. There is great uncertainty because the United States produce more (oil) ... In addition, China is buying less than before," Prime Minister Jens Stoltenberg told public broadcaster NRK.
"We must be prepared for more falls (in oil prices)," he said during a break in negotiations for the 2014 budget.
Norway runs huge budget surpluses thanks to lucrative oil revenues but stashes most of that money away in a $750 billion wealth fund, spending no more than 4 percent of the fund each year on a well developed public sector.
Actual spending as a percentage of the oil money has fallen for the past two years and Stoltenberg said his budget, which will be presented after parliamentary elections but before the new government takes over, would anticipate oil spending at barely 3 percent, down from 3.3 percent this year.
Norwegians go to the polls on September 9.
($1 = 6.0981 Norwegian crowns)
(Reporting by Gwladys Fouche; Editing by John Stonestreet)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- UK Oil Regulator Publishes New Emissions Reduction Plan
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- PetroChina Posts Higher Annual Profit on Higher Production
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension