Remember oil is volatile commodity, said Total CEO

Patrick Pouyanné, the man who succeeded the late Christophe de Margerie as chief executive of French energy company Total, vowed surgical rather than drastic response to oil price slide. In an interview with the Financial Times, Pouyanné said Total will “weather the storm” thanks to cost-cutting plan – up to 10% in 2015 – and the likely sale of less profitable exploration and developments projects. The halving of oil prices from $110 to $46 for the Brent in the last 6 months made everyone rediscover that “oil is a volatile commodity,” said Pouyanné whose company’s break-even price would be around $40 a barrel. “The best way to face this volatility is to have the company strong enough to lower your cash break-even,” he added. Meanwhile, Iraq’s Minister of Oil Adil Abd Al-Mahdi said that the oil prices might not rise again until the middle of the current year which might witness a slow gradual rise.