OMV expects energy prices to rise in order to offset the conflict impact

Austrian oil-and-gas group OMV stated?on Thursday that it expects higher energy prices to offset the impact of the Middle East conflict on sales volume.

Oil companies have benefited as a result of the increased volatility in energy markets, which was triggered by the conflict between Israel and America with Iran.

Vienna-based group reported average 'natural gas prices' 21.5% higher than the first quarter. The average realized crude oil price for the period April to June rose from $72.30 to $97.80 per barrel.

OMV said it expected a more favorable production mix and a higher utilization in its refinery unit to more than compensate the effects of rising crude prices and temporary regulations in Romania and Austria.

Austrian government passed new rules in response to an increase in oil prices caused by the Iran War. The new rules require that any 'rise' in value added tax revenue resulting from higher fuel 'prices' be returned to consumers via a lower fuel tax and limit retailers' margins.

The group raised its estimates for energy prices in 2026, with Brent crude oil expected to cost between $85-$95 per barrel this year. This was based on the assumption that the Strait of Hormuz will reopen at the end of the month. Reporting by Danny Callaghan, Tristan Veyet and Matt Scuffham

(source: Reuters)