Major European oil companies need the prices of Brent to stay between $50 and $60 per barrel so that their cash flow would break even this year, Fitch Ratings said on Monday in a press release, published shortly before OPEC is due to announce its monthly report.
The statement from Fitch says that Royal Dutch Shell, Total, and BP should be able to cover capex and cash dividends from operational cash flows. However, if prices declined to $40 or $45 per barrel, dividend cuts and capex reductions might be necessary if the companies want to defend their credit ratings.
In the markets, Brent for April traded 0.62% lower for $56.33 per barrel at 12:24 pm CET. West Texas Intermediate declined 0.65% to go for $53.54 per barrel at 12:25 pm CET.
Image: EPA/JUSTIN LANE
