The head of the SNP: the oil price will rise by the summer to $50 per barrel

The head of the SNP: the oil price will rise by the summer to $50 per barrel

The fall in oil prices in the near future should stop, because it is not profitable for neither the American side nor with the Arab world, says Gennady Shmal.

RIGA, 15 Jan –. Oil prices will soon rise because the fall is not profitable to any large state associated with its production, said in an interview to the Latvian mass-media the President of the Union of oil and gas Industrialists of Russia Gennady Shmal.

“I think that the fall in the coming time, prices will rise, because, first, it is not profitable for American exchanges, which reduces shale oil production, I’m not even talking about the Canadians. And indeed for the Arab countries that brought down the oil prices, it is very unprofitable,” he said.

According to him, by mid-year the oil price must rise to $ 50 per barrel. However, the head of the Union, it depends on many factors, including the development of the world economy.

“Of course, remains quite a serious challenge, although I remember a time when the price per barrel was less than $ 10, then we wished for was 20. So the tragedy will not happen, but some problems with our oil companies and in General the country are,” said the weed.

Since the beginning of summer 2014 to early 2015, oil prices have fallen by more than half, from 115 to 48.5 dollars per barrel Brent. In 2015, the quotations did not rise above 67 dollars, and in 2016 and did fall to below 30 dollars a barrel.

As at 15.22 GMT Friday, the March futures price for North sea petroleum mix of mark Brent fell relative to the previous day by 3.68% to 29,75 per barrel. The price of February futures for oil of mark WTI fell by 489% to 29,68 per barrel.