The Italian energy group Eni reduced its forecast for Brent crude prices for 2023 to $ 60, instead of $ 70 in previous estimates, due to the Corona virus crisis (Covid-19).

"The change in long-term estimates 4 months after the Covid-19 pandemic broke out reflects our current outlook for the future of prices," said Group CEO Claudio Descalzi.

The Italian Eni also expected - in a statement - that the price of Brent crude stabilize at $ 40 a barrel this year, and rise slightly to $ 48 next year, and $ 55 for 2022, which are low expectations compared to previous estimates announced by the company.

The company announced - like other international oil companies - to write off about 3.5 billion euros (4 billion dollars) from the value of its assets, after having revised down its long-term forecasts for oil and gas prices due to the economic repercussions of the Covid-19 crisis.

The move follows a similar write-off of assets from competitors such as BP and Shell, with demand deteriorating due to the Covid-19 crisis and the shift to low-carbon energy, which sparked a recalculation of reserves and asset values.

And oil futures closed largely stable yesterday, Monday, with the market gravitating between positive economic data supporting prices, and a jump in cases of coronavirus in the United States, which may curb fuel demand and pressure prices.

US crude prices closed yesterday at $ 40.63 a barrel (Reuters)

Brent crude contracts, the world’s record, ended the trading session up 30 cents, to $ 43.10 a barrel, while the US benchmark West Texas Intermediate crude contracts fell two years, to record at closing $ 40.63 a barrel.

"The competing forces in the oil market now are to reopen economies around the world, which increases the demand for oil, in exchange for facing concerns over the closure of economies around the world due to a jump in new HIV infections," said Andy Libo, chief consultant to Libo Oil Associates.

The most important expectations of companies and institutions:

  • The World Bank trimmed its forecast for average Brent crude price to $ 35 this year.
  •  Goldman Sachs Equity Research forecast the price of Brent in the range of $ 37 to $ 43 in the third and fourth quarters of this year, and $ 60 for 2022.
  • The Bank of America Global Research forecasted an oil price of $ 43.70 a barrel this year, and $ 50 next year, then $ 55 for 2022.