Dvorkovich called unrealistic average oil price of $20

Moscow. January 29. The current low price of oil may not be average for the year 2016, said Deputy Prime Minister Arkady Dvorkovich during a news conference at the Central office.

“The market is self-adjusting, self-adjusting external factors and the tax system, and this will lead to higher levels of oil prices. When this happens, no one can say. I think we should not be fear that the prices will be very low level throughout the year,” he said, noting that the price of $20-24 per barrel as an average price for the year was unrealistic.

“I think we should have no fears that prices will be at very low level. They can fluctuate, but the price in $20-$24 per barrel for the year, it seems to me unrealistic. I personally think that prices may rise to a higher level as a result including the reduction of world production,” he added.

According to him, the government believes that, Russian oil companies, which are mostly privately owned, would themselves be regulated, what level of production they need.

“We proceed from the fact that the oil sector is largely private, commercially oriented and is not under direct control of the state (from the point of view of ownership). And this will continue. The company will look at the situation, based on their interests,” said Dvorkovich, answering the question about the possibility of coordination of Russia with OPEC and other oil producers to increase oil prices, and the expediency of Russia to reduce production.

Vice Prime Minister believes that if the prices will be excessively low for too long, adjustments will be inevitable.

Dvorkovich also said that Russia is engaged in extensive consultation with other oil and gas producing countries on the situation in the global oil market.