The fed tightening could lead to the strengthening of the dollar and a further decline in oil prices, noted Herman Gref. According to the head of Sberbank, the price of oil is likely to hover around today’s indicators.
MOSCOW, 25 Dec. Oil prices are strongly linked with the policy of the Federal reserve system (FRS) the USA, whose decisions can lead to further decline in oil prices, said the head of Sberbank, major Russian credit institution, ex-Minister of economic development Herman Gref.
“Our whole economy depends on a key parameter is the oil price. Today there is no one who can predict the price of oil. Therefore, the projections of oil prices fluctuate with trends. And today, all give a further decline in oil prices, we can talk about that today, 35-36 price (per barrel – ed.), then you can say that it will fluctuate in the coming months in the region of plus or minus 10% in both sides, what it will be, no one can know,” — said Gref.
The fed tightening could lead to the strengthening of the dollar and the drop in oil prices. “Oil prices are very much linked to the Federal reserve policy, therefore, the key trends associated with further lowering. The dollar is likely to strengthen, there will be increased the fed’s policy — this means that the largest derivative market in oil, the dollar will go. From the point of view of the monetary situation, the price of oil should fall… of Course, the ruble will fall,” says Gref.The survey
What will happen to oil prices in 2016?
- Will collapse to $ 20 per barrel
- Will remain at around 30-35 dollars
- Edge up to 45-50 dollars
- Soar to 90-100 dollars
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