Putin admitted the possibility of error in his forecast for oil production


Russian President Vladimir Putin in an interview with Bloomberg acknowledged that could be wrong in his forecast about stopping the world’s oil production in the fall of its cost to $80 per barrel. Thus he noted that doesn’t remember when exactly did this forecast.

Interview, Putin took in Vladivostok, editor in chief of Bloomberg John Micklethwait. “Two years ago you said when the price of oil fell to $80, if that happens, oil production will collapse”, — he said (the quote is given according to the interview transcript on the Kremlin website). “The price is still below $ 50, and production has not stopped. Have you changed Your approach to this issue?” asked Micklethwait Putin.

“If I told you that oil production will stop, then I was wrong,” — said the President. He added that he does not remember making such a prediction. “Apparently, the heat of the moment, but, in my opinion, I even never said you were, but maybe don’t remember,” admitted the head of state.

Putin said that while he doubted the possibility of entering new fields at a certain level of oil prices. “In fact, it happens”, — stated the President. Thus, in his words, “surprisingly” the Russian oil and gas producers continue to invest in the industry. Putin also noted that Russia is increasing oil production and electricity production. In addition, the President added that Russia occupy a leading place in the export of natural gas and liquid hydrocarbons.

In October 2014 at a press conference following his visit to Italy Putin has called “fairly low threshold” the price of oil at $80 and noted that it is not interested in none of the market participants.

“If you take the Shell — the oil extracted in the United States, they have the same profitability is under $80. If world prices stay at $80, all production will collapse,” — said Putin.

Day, September 2, of oil North sea Brent crude on the ICE futures exchange with delivery in November traded at a price of $46,12, rising in price by 1.47% to the closing the previous trading session. Crude oil cost about $43,7 per barrel.

 

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