OMV expects higher energy prices to offset conflict impact

July 9 (Reuters) – Austrian oil and gas group OMV (OMVV.VI), opens new tab said on Thursday it ‌expects higher energy prices to offset the impact on sales volumes from the Middle East conflict.

Oil companies have benefited from heightened energy-market volatility as the U.S.-Israeli conflict with Iran triggered sharp swings in crude oil and ⁠natural gas prices.

The Vienna-based group recorded average natural gas prices 21.5% higher in the second quarter compared with the first quarter. It said the average realised crude oil price rose to $97.80 per barrel for the April-to-June period from $72.30.

OMV said it expects a more favourable production mix and higher utilisation in its refining unit to more than offset the effects ‌of ⁠higher crude prices and temporary regulatory measures in Romania and Austria.

Austria’s government, in response to an oil price surge driven by the Iran war, passed new rules requiring any rise in value-added tax revenue ⁠from higher fuel prices to be returned to consumers through lower fuel tax, and to cap retailers’ margins, including those of OMV.

In ⁠April, the group lifted its forecasts for 2026 energy prices, estimating Brent crude oil to cost between $85 and $95 per ⁠barrel this year, under the assumption that the Strait of Hormuz would reopen by the end of June.

Reporting by Danny Callaghan and Tristan Veyet; Editing by Matt Scuffham

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Source: Original Article

OMV expects higher energy prices to offset conflict impact

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