((Translation automated by Reuters, please consult the non-responsibility clause https://bit.ly/rtrsauto)) by Arathy Somasekhar
Oil prices below 50 dollars can harm the final investment decisions in offshore projects, the director general of the petroleum service company Weatherford International WFRD.O, Girish Saligram said on Monday.
The plans of the OPEC+ producer group to increase the production and pricing policies of the American president Donald Trump have dropped the prices of US crude oil CLC1 at their lowest level for more than four years, at around 57 dollars, which worries investors of production closings. GOLD
Offshore production has remained a rare positive point because investments have a longer cycle, unlike shale.
“If the prices are maintained below 50 dollars per barrel, I think that could create a certain lull for some of the new final investment decisions, said Saligram on the sidelines of the Technology Conference offshore in Houston.
It is unlikely that the projects already underway will be affected, because companies have envisaged various raw material price scenarios, added Mr. Saligram.
