The speaker: we must prepare for the oil price of $40-50 per barrel in the long term

MOSCOW, February 19. The oil price will soon stabilize, however, expect a return to triple-digit prices is not worth it. This was announced by the Minister of economic development of the Russian Federation Alexey Ulyukaev in interview to TV channel “Russia 24”.

“We must be prepared for the fact that in the long term and the budget, and the overall economic structure to build on the assumption that the price of 40-50 dollars per barrel,” he said.

According to him, a “close time” of possible stabilization in oil prices at the level higher than it is now. “But one should not expect long-term returns to triple-digit oil prices”, – said the Minister. This is because there are global changes of demand, energy mix, changes in the automotive industry, he added.

According to him, the stabilization of oil prices at the level above the current can lead to the strengthening of the ruble.

“If we assume that there will be some strengthening in oil prices, stabilization of the price level is higher than it is today, it can be assumed that the rate will be somewhat stronger than today,” he said.

The Bank of Russia from November 10, 2014 abolished the previously existing mechanism of exchange rate policy and completed the transition to the floating exchange rate regime. The fall of the ruble began in the second half of 2014, while from June to December, the Russian currency has fallen against the dollar by 2.2 times. Then in 2015 amid falling oil prices, the ruble fell against the dollar by 31%, to Euro – by 17%. Since the beginning of this year, the dollar rose against the ruble by another 8% to 79.5 per ruble and Euro – 12% to 90.1 ruble.