Statoil CEO says expects oil price to rise over time

Statoil's Chief Executive Eldar Saetre delivers a speech at a news conference in London February 6, 2015. REUTERS/Toby Melville

OSLO (Reuters) - The price of crude oil is likely to rise over time despite the recent fall to levels last seen in 2004, Statoil Chief Executive Eldar Saetre told Reuters on Thursday.

“It’s difficult to predict how the price will develop in the short term. There will probably be volatility and big swings. We firmly believe prices will rise because there is little new production capacity entering the market,” he said.

“I also believe that the longer it takes before the oil price rises, the more powerful that increase will become.”

Reporting by Henrik Stolen, writing by Terje Solsvik, editing by Stine Jacobsen