Norwegian Oil investment likely to increase sharply – Nordea bank
Source: FxWire Pro - Commentary / 24 May 2018 17:36:52 America/New_York
Norwegian oil investment survey is expected to show strong growth in oil investment, noted Nordea Bank in a research report. Solid growth in oil investment in 2018 as well as in 2019 is a significant reason for the upbeat view on the economy. Growth in oil investment more than offsets the impact of lower housing activity which follows last year’s deceleration in housing prices.
The second quarter oil investment survey might contain updated plans for oil investment in 2018 and the first published plans for next year. The figure for 2018 might most likely not be revised much compared to the first quarter survey, but a moderate upward revision is expected which will indicate towards growth at 8 percent to 10 percent in 2018, stated Nordea Bank.
But the main focus is expected to be on the first plans for 2019. The plans are expected to be upwardly revised later and next year’s figure might be much harder to interpret than the 2018 figure. A starting point would be to compare it with plans for 2018 given at this time last year.
“For the survey to be in line Norges Bank’s 2019 forecast (8.2 percent) we would say 2019 plans should be close to NOK 160 bn. But we have to look at the details and what Statistic Norway says about possible projects not included in the survey yet”, added Nordea Bank.
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