Novak: oil markets will balance out at $50 per barrel until the end of 2016

MOSCOW, November 24. Global oil markets will be balanced at $50 per barrel until the end of 2016 due to the availability of surplus on the market. This was stated by Minister of energy Alexander Novak radio station “Vesti FM”.

“Rough estimate is as follows: until the end of 2016 the market can be balanced. It is still a large surplus on the market,” he said.

“I think we should focus on those pictures that in the past year about balance at $50 per barrel. In this sense, it is better to be a pessimist, than to hope for higher prices”, – said the head of the Ministry of energy.

The Bank of Russia when planning monetary policy also comes from the total that oil prices may remain at low levels in the foreseeable future. According to the pessimistic forecast of the Central Bank, oil prices will be significantly below $40 per barrel.

However, according to the calculations Ministry of economic development conservative forecast for 2016 is $40 per barrel.

Deputy Chairman of Vnesheconombank Andrei Klepach believes that next year the price of oil will rise rather than to decline. He called it unlikely the price of oil to $40 per barrel and below. According to his forecast, the price could rise next year to $55-60 per barrel.