Ulyukayev: oil prices will rise to $50 in the second half of 2016.

Ulyukayev: oil prices will rise to $50 in the second half of 2016.

MOSCOW, December 29. World oil prices stabilised in the second half of 2016 at approximately $50 per barrel, said the Minister of economic development of the Russian Federation Alexey Ulyukaev in interview to “Komsomolskaya Pravda” published on the newspaper’s website.

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“Must be found the new balance (supply and demand). My feeling is that somewhere in the second half of 2016, that balance will be found. I think it will be at about 50 dollars per barrel”, – said Ulyukayev.

He noted that several more months will it take for the manufacturer and user find new balance.

“For many countries the level of 35-45 dollars per barrel is not acceptable. Their budgets are calculated from prices 60-90 dollars. Our way, one of the most conservative, assumes $ 50. Less only Norway and Kazakhstan. However, so long can not continue”, – said the Minister.

According to him, the demand for oil grows. “Next year is projected 1.25 million barrels of growth, I think that will be even a little bit more,” said the Minister of economic development.

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The consequences of specter against Turkey

Possible fluctuations of prices due to the sanctions imposed by Russia against Turkey, can be removed within a few weeks or months, also said.

“It will take a while, which may be some, including pricing, distortions. I think it’s a matter of a few weeks or months, during which time the situation will be stable”, – he noted.

Ulyukayev added that the food embargo to Turkey quite narrow. “But due to the sweeping, dramatic nature of these changes, there may be some consequences, including inflation. For example, our dependence on the Turkish market in the vegetables is quite large, primarily from tomatoes,” continued the Minister.

He recalled that there are a large number of suppliers who are ready to take this niche. “Only it takes time to renegotiate contracts, to build up the logistics,” – said Ulyukayev.