Alekperov predicted the rise in oil prices to end the year above $55

The price of oil by the end of 2016 could exceed $55 per barrel, said the head of LUKOIL Vagit Alekperov in an interview to television channel “Russia 24”. According to him, during the year, oil prices will remain at $45-55 per barrel. “Most likely, the price of oil today will range between $45-55, and by the end of the year we can be witnesses to the fact that the price will exceed this figure”, —he said (quoted by TASS).

The reason for the increase in oil prices, according to the head of LUKOIL, may be the underinvestment in the industry, which will lead to reduction of volumes of extraction and production.

“In 2015, nearly $300 billion neconventionala in our industry, in the first quarter of [2006] [volume of neconventionale] another $100 billion. of Course, this affects the volume of production, the volume of exploration for oil, especially in complex regions and technologically challenging fields,” — said Alekperov.

Earlier, in April of this year, the head of LUKOIL said that oil prices are moving towards stability and will increase. He predicted that by the beginning of the next, 2017, the price of a barrel of oil will be $50. The head of LUKOIL claimed that in mid-2017 will be felt shortage of supply in the oil market. In late April, after unsuccessful negotiations to freeze production at the meeting of the representatives of the countries-oil producers in Doha, Alekperov said that OPEC in its present form is not capable of performing the function of a regulator and needs to be reformed.

In 2015, Alekperov predicted that in coming years the price of oil will reach $65-90 per barrel, and the lower limit of the rates for 2016 called $40 a barrel. Below this level, oil prices fell in February and April 2016, then at a minimum Brent crude oil was worth $32,4 $37,9 per barrel. As of 10:10 Moscow time cost of July futures for Brent is $49,36.