Friday, February 26, 2016

The Finance Ministry expects oil prices remain at around $ 40 per barrel – RIA Novosti

SHANGHAI, Feb. 26 -. RIA Novosti Ministry of Finance in the preparation of a new fiscal rule based on the expectation that oil prices in the long term will not significantly deviate from the $ 40 per barrel, and offers at growth prices above $ 50 per barrel of additional revenues directed to the reserves to prevent excessive strengthening of the ruble, told reporters the head of Anton Siluanov the Ministry of Finance.

The Finance Ministry holds funds in foreign currency reserves, and their replenishment purchases it, that contributes to the weakening of the ruble

“the long-term price trend, according to our estimates, will not differ from the $ 40 per barrel:. Now overproduction of oil, large reserves, reducing the economy – it affects our expectations for this type of our commodity exports, “- Siluanov told

oil. Archive photo

© AP Photo / Hasan Jamali

” Given that according to our estimates, the oil in the near future will not return to the levels of two or three years ago, we, of course, will need to create a safety cushion based on the new realities, “- he continued

this year, the effect of fiscal rule limiting expenditure opportunistic budget revenues. suspended, and the Ministry of Finance should develop its new version that takes into account the situation on the world oil market. “The question of budgetary rules on our agenda … We believe that oil and gas revenues to the level of income in excess of $ 50 per barrel have to still communicated in the economy through the budget and save, “- said the Minister

.” This is primarily due to exchange rate changes, because if oil prices exceed $ 50 threshold, the impact on the course will be essential. As a result, all the advantages that have received our company changes course as a result of, on the one hand, can simply disappear. On the other hand, we must not repeat the mistakes that we very easily passed on easing fiscal rule “- he explained

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