Russian economy minister says oil price expected at 52 dollars

(RIA Novosti – August 24, 2015)

Russian Economic Development Minister has said the price of oil will find a new balance in a few months at the level of just over 50 dollars a barrel, RIA Novosti (part of the state-owned International News Agency Rossiya Segodnya) reported on 24 August.

He said the average price of Urals oil will amount to 52 dollars a barrel in 2015, to 55 dollars – in 2016, and to 60 dollars – in 2017-2018.

The official forecast of the Ministry of Economic Development on the average price of Urals is 50 dollars a barrel for 2015 and 60 dollars a barrel for 2016, RIA Novosti said.

It said the ministry will submit the revised forecast to the government by September.

World oil prices showed a very negative trend on 24 August, losing more than 4 per cent, RIA Novosti said.

It said for the first time since March 2009, Brent hit the psychologically-important mark of 45 dollars a barrel on fears about China’s economy, and went below 44 dollars by midday.

“It seems to me that the new equilibrium will be discovered in a few months, and it will be just over 50 (dollars a barrel – RIA Novosti),” Ulyukayev told reporters.

“The average price (of Urals – RIA Novosti) for under eight months is now at 55 dollars a barrel. I think for 2015 the price will be 52 dollars a barrel. It will be 55 dollars in 2016 and 60 dollars in 2017-2018,” he said.

Decrease in federal revenues “insignificant”

The minister also said the decrease in federal revenues in 2016 will be insignificant compared with what had been expected and will amount to “a few tenths of a per cent of GDP”, privately-owned Russian news agency Interfax reported later on the same day.

“Budget revenues are falling – slightly, as rouble revenues from oil and gas remain almost unchanged. We are talking about a few tenths of GDP,” Ulyukayev said.