July 7, 2020 / 2:03 PM / a month ago

Graphic: Write-downs put spotlight on energy majors' scattered oil price outlooks

FILE PHOTO: An entrance of the oil refinery of Eni is seen in Taranto, southern Italy, September 21, 2018. REUTERS/Alessandro Bianchi

LONDON (Reuters) - A series of huge write-downs among energy majors triggered by lower assumptions for future oil prices has put a spotlight on the sector’s scattered price outlooks.

On Monday, Eni announced a 3.5 billion euro ($3.95 billion) impairment on the value of its assets after revising down its long-term oil price outlook.

That followed Royal Dutch Shell’s RDSA.L $22 billion write-down last week and BP’s (BP.L) $17.5 billion hit in June.

While break-even prices for new development projects typically lie below future oil price assumptions, these write-downs have raised questions about the risk of stranded assets in the oil and gas sector.

Here is a graphic showing the varying oil price assumptions among European energy majors:

Majors' oil price assumptions here

Reporting by Shadia Nasralla and Ron Bousso; Editing by Jan Harvey

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