Novak called “fundamentally good” price for oil of $50 per barrel

Established recently the price of oil at $50 dollars per barrel is good and suits both producers and consumers, said energy Minister Alexander Novak in an interview with Bloomberg. Responding to a question about whether Russia and Saudi Arabia as the two largest oil supplier, to enter into any agreement to influence the oil market, Novak said that at current oil prices, this is not necessary.

“At present, unless some force majeure [in oil prices], to talk about some joint actions are premature,” said Novak.

“Prices, today, are fundamentally good. About $50 per barrel. They satisfy both producer and consumer” — said the Minister.

He also noted that now the world is “a global period of low oil prices, and these periods can last from 10 to 15 years”, however, according to Novak, according to many forecasts, the price in the next few years can grow. Minister of energy stressed that the current drop in oil prices is associated with the development of new technologies and increasing production volumes, but at the same time, according to Novak “the good news” associated with the growth of consumption.

Earlier, Nowak also noted that the lack of oil on the world market can occur in two to four years. “Such risks actually exist,” — said the Minister. Novak said that the deficit could be due to the fact that a huge amount of investment has left the market, may cause the inability to ensure the growth of demand in full.

16 June the price of Brent crude oil fell to $of 47.21, showing a decline of more than $1.5. The cost of a barrel of Brent was not may 12, 2016.