RIA Novosti: Russian Finance Ministry Expects Oil Prices of $90-95 per Barrel in 2015

Oil Well file photo

MOSCOW, August 26 (RIA Novosti) – Russia’s Ministry of Finance expects an average oil price of $90-95 per barrel in 2015, Deputy Finance Minister Alexei Moiseyev told RIA Novosti on Tuesday.

“The price for oil in 2015 will be $90-95 per barrel,” Moiseyev said.

The Ministry of Economic Development earlier predicted an average oil price of $100 per barrel over 2015-2017.

Moiseev added that oil prices are currently below $100 per barrel, but that they will probably not drop any lower by the end of the year.

The Ministry of Economic Development believes that the decrease in oil prices could weaken the ruble. The ministry also expects a decline in investment in the oil and gas sector, with the most dramatic drop potentially occurring in 2016, which could see investment growth shrink to 1.6 percent per year.

The ministry also said it expects the oil and gas price decline to result in a decrease in the value of oil and gas exports from $356 billion in 2013, to $323 billion in 2015, and $322 billion in 2017.

The ministry also forecasts oil production growth to slow, falling to 520 million tons by 2017. Oil exports are also expected to decline.