Crude prices that have almost halved in the past year are unsustainable at current levels as cuts to investments and postponement of projects will lead to a decline in supply growth, according to Norway’s biggest oil company.
“We think that the price level now is too low,” Eirik Waerness, chief economist and vice-president at Statoil ASA, said in an interview in Singapore on Thursday. “Some people will stop exploring for oil. With oil prices around $50, you get a stimulus for demand growth. That will tighten the market.” Crude is expected to climb to $80 a barrel in 2018 and increase gradually after that as existing supplies get used up, he said.
Brazil Energy Insight 
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