The speaker sees no reason for the sharp deviation in oil prices from $50

The speaker sees no reason for the sharp deviation in oil prices from $50

Oil production increases and oil drilling – no, that creates a multidirectional dynamics, which may persist for an unknown period, said the head of Ministry of economic development Alexei Ulyukayev.

MANILA (Philippines), 16 Nov. The head of the Ministry of economic development Alexei Ulyukayev believes that the average oil price will be at projected levels in 2016 will average $ 50 per barrel.

“It is difficult to assess the prospects of this long (that oil remains at low levels — ed.) because here the dynamics of the stocks and the dynamics of American shale oil (affecting the price — ed.). American shale oil is closing costs, which determine the lower value pricing”, — he told journalists.

“There is such multidirectional dynamics. Extraction increases, even though the drilling is not growing. And that’s not very clear, this long-term trend or a long period. So nevertheless, we believe that the average price (for oil in 2016 — ed.) will be closer to the values that we have in the forecast — about 50 (per barrel — ed.)”, — the Minister added.

According to the forecast of the Ministry, the average annual price for Urals crude oil in 2015 will be 53 dollars per barrel in 2016 — $ 50 per barrel, which is included in the draft budget 2016, and in 2017 — $ 52 dollars per barrel in 2018 — $ 55 per barrel.

Currently the oil prices fluctuate at the level of 40-45 dollars per barrel. So, as at 14.01 GMT on 16 November, the cost of the January futures for North sea Brent blend was $ 44,85 USD per barrel. The price of December futures for light WTI — 41,29 dollars per barrel.