DAVOS, Switzerland (Reuters) - Oil prices will not go back to the 2008 peak levels of more than $140 a barrel and are expected to trade in a $60 to $80 range, the Chief Executive of oil major Royal Dutch Shell RDSa.L told Reuters Insider.
Asked whether he expected oil to go back to $140, Peter Voser said: “I don’t think so. Volatility is still high, but I do not see it as high as we have seen it in 2008.”
When asked whether he expected oil to trade in a $60 to $80 range, he said: “That is what you hear from the producers and that is what you hear from us.” He did not give a time framework.
Voser said he expected refining margins to stay “very depressed.”
“What we have seen in 2009 we will also see in 2010. There is lot of capacity around and the demand is simply not coming back,” he said.
Asked about consolidation in the European refining market he said: “We will see some consolidation. It’s already ongoing.”
Reporting by Lisa Jucca; Editing by Jon Boyle