The Ministry of Finance called the average price of oil in 2016

The Ministry of Finance called the average price of oil in 2016

Moscow. December 30. The Finance Ministry predicts the average price of oil in 2016 at $40 per barrel, said the Minister of Finance Anton Siluanov in interview to TV channel “Russia 24” on Wednesday.

“We actually have to be ready for any development of the situation around oil prices. Our estimates for the next year – about $40 per barrel in the evaluation budget. At $40 a barrel there is an understanding of how we should act, prepared measures,” – said Siluanov.

Annual inflation, according to Siluanov, will slow in 2016 to 6-7% from about 13% at the end of the current year.

The Minister also said that the Finance Ministry may prepare proposals to adjust the Federal budget for 2016 at the end of the first quarter. “We have prepared a list of measures for dealing with costs. These proposals are ready. Ministries and agencies have received specific orientation on the work with the expenditure side of the budget. We agreed that we will pursue clarification of state programs. Well and accordingly if the situation does not change, we will be at the end of the quarter to prepare proposals on amendments (budget – approx. If),” – said Siluanov, adding that the Ministry of Finance retains the target for the budget deficit-2016 less than 3% of GDP.

According to him, in 2016 Russia will study the possibility to borrow on foreign markets to $3 billion “We will look at the feasibility of entering foreign markets, we must look out the “window” is the most appropriate and most advantageous for the Russian Federation”, – said the Minister.

The CBR expects the country’s economy in 2016 in the base case oil price of $50 per barrel will continue to decline by 0.5-1%, the forecast of economic development and Finance – an increase of 0.7%. While current oil prices make the baseline scenario of the Central Bank and the Ministry of economic development at $50 a barrel is quite optimistic.

A conservative forecast of Ministry of economic development, calculated at $40 oil, involves reducing GDP by 1%. Risk scenario the Central Bank, calculated at $35 per barrel, in 2016 implies a drop in GDP of 2-3%.

Earlier on Wednesday it became known that Kuwait has budgeted for next year price its oil at about $30 per barrel. About this newspaper Alrai without reference to the source of information. The authorities are counting on oil revenues at the level made 7.16 interest billion dinars.

Saudi Arabia on Monday released a budget for 2016, which is designed on the basis of the very cautious oil price forecast for 10 years – from $29 to $37 per barrel of oil. The budget was taken as the weighted average cost of the basket of five grades of Saudi oil from the Arab Super Light Arab Heavy. The 2015 budget, according to experts, was based on the price of Saudi oil at $50 a barrel.

Due to the sharp decline in oil prices 9 out of 13 States OPEC will record budget deficits by the end of 2015.