The Ministry of energy of the Russian Federation: reduction of stocks in the market will lead to a rise in the price of oil

The Ministry of energy of the Russian Federation: reduction of stocks in the market will lead to a rise in the price of oil


MOSCOW, February 17. Lower inventories in the market will lead to a rise in the price of oil, the objective level of $40-50 per barrel, said the Agency, Deputy energy Minister Kirill Molodtsov.

“A parity price for oil is above $40 a barrel, somewhere in the region of 50. Here is the price really justified by the market, not futures, not speculation opportunities when you can purchase the product, in fact, to lay in him the value of money. While this factor weighs on the market, we will be in such low ranges. As soon as commodity production will finally begin to influence the consumption and stock levels of free offers will decrease, relatively, less than 1.5 million barrels a day, the price will rise”, – he said.

Earlier it was reported that on the eve of the Minister of energy Alexander Novak attended a meeting with representatives of member countries of OPEC. Russia, Saudi Arabia, Qatar and Venezuela following talks in Doha said that they are ready to save, on average, in 2016 oil production at the level of January 2016, if other countries-oil producers will join this initiative.

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Oil prices over 40 years

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