Dec 29, 2020
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Media: 2020 was the worst year for the oil market in 10 years

The outgoing year was the worst for oil companies and the market over the past 10 years. Oil producers wrote off assets worth $ 145 million in the first nine months alone.

Such data leads The Wall Street Journal. In 2015, which the publication uses as an example, the amount of write-offs was $ 72.1 billion.At the same time, the 2020 statistics did not include the write-off of ExxonMobil for $ 20 billion, which refers to the fourth quarter of the year, and the write-off of Chevron for $ 10 billion.

The volume of written off assets reached 10% of the market capitalization of all companies operating in the global oil market worth over $ 1 billion. Many enterprises did not survive the drastic drop in oil demand caused by the coronavirus pandemic and went bankrupt.

Previously, analysts predicted continued low oil prices in 2021. Experts from the Fitch rating agency believe that a barrel of Brent crude will cost about $ 45. The Organization of Petroleum Exporting Countries (OPEC) admits that humanity is approaching the end of the era of hydrocarbon fuels.

As reported, the Russian authorities consider the oil price range optimal for the market from $ 45 to $ 55 per barrel. Such cost per unit of fuel allows not only to support producers, but also not to overheat the market. Russian Deputy Prime Minister Alexander Novak announced this in a conversation with journalists on December 25.

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