Statoil Sees Risk of Deeper Slump as Oil Touches 12-Year Low

Statoil ASA, Norway’s biggest energy company, said an oil rout that’s pushed prices to a 12-year low may still get worse.

“It could go even lower, and it just underlines the uncertainty,” Chief Executive Officer Eldar Saetre said in an interview in Oslo. “We still have a situation with an imbalance in the market.”

West Texas Intermediate sank as much as 5.5 percent on Thursday to $32.10 a barrel, the lowest since December 2003, on concern the slowdown in Chinese growth is deepening while global oil supplies continue to swamp demand. Prices have tumbled for more than a year amid a decision by the Organization of Petroleum Exporting Countries to maintain output to defend market share. Benchmark Brent touched $32.16 on Thursday, the lowest since April 2004.

Saetre, who remarked in October that Brent may have found a “floor” as it recovered to about $50 a barrel after dropping to the mid-$40s twice in 2015, said most market participants are “probably surprised” prices have gone so low. Even so, Statoil expects crude to recover eventually and will stick to its dividend policy, the CEO said.

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