Eni cut its forecast for 2021 to $48 a barrel

 
Italy's Eni cut its long-term oil price forecast on Tuesday, saying the outbreak will have a "lasting impact" on the global economy and the energy industry.
 
Weeks after BP and Shell cut their long-term price forecasts, Eni cut its 2020-2024 and long-term oil and gas price forecasts and warned of a $4 billion after-tax impairment charge on illiquid assets in the second quarter, plus or minus 20 percent.

Eni now expects Brent to reach $60 a barrel by 2023, up from its previous forecast of $70. Brent prices are expected to be $40, $48 and $55 a barrel in 2020-2022, compared with previous forecasts of $45, $55 and $70.
 
As well as lowering its oil price forecasts, the Italian company has now renewed its February commitment to reduce its carbon footprint and may even accelerate efforts to better prepare for the energy transition.

Eni CHIEF Executive Claudio Descalzi said that despite the continued impact of the outbreak on the global economy and the company, we have identified a strategy to become a leader in the decarbonisation process. We are evaluating how to speed up our plan.
 
Descalzi notes that this continued growth will enable the company to achieve a better balanced portfolio, reduce the risk of hydrocarbon price fluctuations, and move towards our sustainable development and profitability goals. Four months after the outbreak, we have changed our long-term assumptions, which reflect our current expectations for future prices and will be incorporated into our capital allocation process.
 
Last month, BP warned of after-tax writedowns and writedowns of between $13 billion and $17.5 billion, and predicted a long-term average price for Brent of $55 a barrel between 2021 and 2050.

Shell warned last week that it could take an after-tax impairment charge of as much as $22bn in the second quarter and warned that it could see significant writedowns on its assets when it revised its price forecasts after the oil price crash.
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