Norway’s Olsen warns of dangers of dipping too deeply into oil fund

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Øystein Olsen. Photo: Norges Bank

The risk of a severe drop in the value of the Norwegian oil fund will become much greater if the government increases its spending of oil revenues, Øystein Olsen warned on February 16.

The Norges Bank governor noted the government had that day approved an increase in the fund's equity allocation from 60% to 70% on the central bank's recommendation. At the same time, the expected return was revised down from 4% to 3%.

The Government Pension Fund Global, managed by Norges Bank Investment Managemen