No return to previous oil, gas price situation – Ulyukayev

Alexei Ulyukayev file photo

MINSK. June 8 (Interfax) – Oil and gas prices are expected to rise, but there will be no return to previous situation, Economic Development Minister Alexei Ulyukayev told reporters in Minsk.

“Of course a recovery of oil and gas prices is under way. Our low was $130 per thousand cubic meters, now it is $170 or more and I think it’ll soon be $200,” he said.

“But in any case we don’t expect a return to the previous situation, because the commodity markets are in any event at a low point in the cycle,” he said.

“We lived in a situation of demand economics, which resulted in revenue growth, and now we’re in a situation of supply economics,” Ulyukayev said.

“Supply economics means cost cutting and developing the commodity distribution network, and a change of $5-$10 either way in the price of oil can in now way influence that situation fundamentally,” he said.