Shell expects global oil prices to remain under pressure during the second half of the year as a result of the ongoing weakness in the global economy, the company's chief executive Peter Voser said Thursday.
"Given the macroeconomic downturn at this stage, I think you will clearly see a lower oil price compared to the last 18 months," Voser told reporters at a press conference following Shell's quarterly results in London.
"I see the oil price soft in the second half," he said.
Voser said Shell looks at long term price trends for oil and gas when planning its future investments, adding that Shell sees a "rather increasing price scenario in the long term and a more volatile world compared to the last 30 years."
Shell assumes an oil price range of $50-90/b to range its investments and measure the potential profitability of its long term projects, Voser said.
"The short term prices are important for how much cash flow we generate this year but do not influence our long term view on investment in projects," Voser said.
Crude prices fell to below $90/b last month, from over $125/b in March, on concerns over the escalating eurozone crisis and the heath of the global economy.
At 0945 GMT, the September ICE Brent crude contract was trading 1% higher at $105.39/b in London.
