Due to the expected long-term impact of the coronavirus pandemic on the global economy, Eni has become the third European oil major to cut its future oil prices assumptions. The company said it has cut its long-term assumption for Brent crude to $60/b in real terms from 2023 from $70/b.
For the years 2020-2022, Brent prices are now expected to average $40, $48 and $55/b, respectively. The previous assumptions were $45, $55 and $70/b. Down from a previous assumption of $7.80/MMBtu, Eni also lowered its assumed natural gas price for the Italian spot market to $5.50/MMBtu in real terms from 2023.
Eni said Long-term refining margins in the Mediterranean region are now seen as slightly lower than $5/b. The company expects to record post-tax impairment charges of around Eur3.5 billion ($3.95 billion) in its second-quarter results.
