MOSCOW, March 7. The increasing deficit on the oil market and the capital cost of providing the oil balance suggests that the price of oil should range from $70 to $90 per barrel. This opinion was expressed by Vice-President and press Secretary of “Rosneft” Mikhail Leontiev the radio station “Russian news service”.
The price of a barrel of Brent oil exceeded $40 per barrel for the first time since December 2015
“The price that guarantees a reliable supply of market needs, the price of at least $ 70 exactly 70-90 dollars – able to date, to justify those capital expenditures that are needed to ensure that in the long term to ensure the balance,” he said.
According to the forecasts of “Rosneft”, the deficit in the oil market could begin in 2017, while oil consumption will in any case grow, even if slightly. Leont’ev also added that in the future the company will start extracting unconventional oil, production of which will require additional investment. Therefore, according to the expert, now the market can count on good news.
In addition, Leont’ev noted that the current price of a barrel of oil over $39 is a response of the market to the speculators that drove oil up to $26 per barrel.
“There are speculative fluctuations on the market. We watched as the oil caught up to almost 26, and she jumped in horror, a reaction of speculators, they realized that this game is already through the floor, rebound has occurred – like a ball. The rest of the volatile oil, on the market there is a surplus of oil, actually, it is very small, not more than that was when oil was more than 100,” – said the expert.
Oil prices over 40 years