Norway lifts oil, gas revenue forecasts as Iran war hikes energy prices

(Sharecast News) - Norway lifted oil and gas production revenue forecasts as it benefited from the surge in energy prices caused by the US-Israeli war on Iran.

The government said it now expected revenue from the petroleum sector of 721 billion Norwegian crowns, up from an initial estimate of 557 billion.

It added that the extra income would be transferred to the state-owned Government Pension Fund, which manages assets of $2trln thanks to the 4 million barrels of oil a day the country produces.

Norway's central bank last week raised its key policy rate by 25 basis points to 4.25%, one of the first to do so amid the crisis caused by the Middle East conflict as it looked to stymie strong wage growth and high energy costs.

The government also revised upwards its outlook for oil and gas prices in response, forecasting a crude oil price of an average $91 per barrel this year, up from the $67 published in its Budget last October.

Natural gas was lifted to $14.0 per million British thermal units (MMBtu), up from $10.4 per MMBtu.

The finance ministry cut its forecast for economic growth outside the oil industry, called non-oil GDP, to 1.7% in 2026 from 2.1% seen in the original budget.

Reporting by Frank Prenesti for Sharecast.com