Despite having staged a solid rebound from cyclical lows hit just a few weeks ago, as its stock surged by almost a third on the back of a dramatic jump in the price of oil, oil giant Exxon is turning increasingly pessimistic on the future of oil price, and according to internal documents seen by the WSJ, the company has lowered its outlook on oil prices for much of the next decade. As part of its internal financial-planning process conducted this fall, Exxon cut its expectations for future oil prices for each of the next seven years by 11% to 17%.
Whereas in 2019, Exxon had internally forecast that Brent prices would average around $62 a barrel for the next five years before increasing to $72 a barrel in 2026 and 2027, this summer, the company lowered that forecast to between $50 and $55 a barrel for the next five years, before eventually topping out at $60 a barrel in 2026 and 2027, according to the documents prepared in September.
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WNU Editor: This is news that all oil producing nations like Russia, Iran, Saudi Arabia, etc. do not want to hear.