The head of “Rosneft” Oil can rise to $ 110 per barrel – Russian newspaper

The head of "Rosneft" Oil can rise to $ 110 per barrel – Russian newspaper

Oil can rise up to 90-110 dollars per barrel, did not rule out the head of “Rosneft” Igor Sechin. This should contribute to the conservation of a number of projects that are not excluded in the context of the current decline in prices for “black gold”.

World oil prices fell more than 50 percent since last summer. Experts attribute this to an excess supply in the market. According to Sechin, in 1985, investment in new wells have been justified if the oil would cost $ 20-30 per barrel. Now, however, the raw material is obtained from the more “expensive” wells. And the break-even price is already 60-110 dollars. The market develops in such a way that the oil price will soon recover to 60-80 dollars and will be beneficial to drill wells, the world needs.

But if oil prices continue to be distorted, many industrial projects will preserve, restore prices will take more time than it takes – and then eventually the price will increase to 90-110 dollars per barrel or even higher, says Sechin.

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However, the head of “Rosneft” has proposed a number of measures to combat with speculators in the market. “Firstly, financial players can no longer afford to have such a great impact on oil prices,” – he said in an article published in the Financial Times. It is also necessary to achieve the sale of at least 10-15 percent of the oil in the form of a physical rather than a futures contract. “Now almost all oil transactions conducted by financial traders who are only exchanged electronic symbols or sheets of paper,” – says Sechin. Therefore it is necessary to make international efforts to trade has become more transparent, and price manipulation – is impossible. To do this, you must share information about the market, such as data on oil production and consumption, prices on her contract. “We must be sure that analysts in investment banks are no potential conflicts of interest or,” – said Sechin.

Meanwhile, threaten sanctions against Russian fuel supplies Europe, following the example of Iran, said Igor Sechin. “The sanctions imposed against Iran, the impact on the supply of oil and the foreign trade balance,” – he said.

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