The head of the Ministry of Energy Alexander Novak
The cycle of falling oil prices will end by the end of 2017, followed by a “rebalancing of supply and demand,” said Alexander Novak. He believes that after 2017 the price will return to $ 60-65 per barrel
According to the head of the Ministry of Energy Alexander Novak to the end of 2017 will end the cycle of low oil prices and the recovery of the market. The minister said at Vestifinance forum, “Interfax»
«Restoring the balance of supply and demand on the oil market began, and the end of 2017 we will see the end of the cycle [lower prices] and the recovery of the market”. – the minister said. According to him, after 2017 the price will return to the range of $ 60-65 per barrel, although the minister did not rule out short-term periods of not falling oil prices.
«Oil supply is in place in the first quarter, the first time since the fall of prices. According to our forecasts and estimations of experts, the second, third and fourth quarter of the supply of oil will be below the level of 2015. And only by the end of 2016, we again reach the level of offer 2015 “, – he added
As explained Novak, the growth of shale oil production can only happen by the end of 2016.. The main reason for decline in production, in his opinion, is the lack of financial resources and lack of confidence of investors in the prospects of the industry.
«According to our estimates, the production even at the current price of oil will continue to decline, and its minimum it reaches somewhere in July and August, has about 700 thousand. barrels decrease production in the United States. This is despite the fact that the price has recovered to a level sufficient for the continuation of production “, – he said
« But the main factor is the lack of financial resources and lack of confidence of investors to the fact to continue to invest. I think that funding issues are resolved, debts restructured. We expect that from the second half of 2016 to the end of the year shale oil again will start at such prices of production growth, “- said the Minister
The head of the Ministry of Energy also said that the current price conditions, the idea of freezing oil production lost. its relevance. “Today, as we see that oil prices have rebounded and bounced quite high in comparison with the beginning of the year, this theme is to freeze until lost its relevance. Let’s see how the situation will develop further », – he said
The minimum for the last few years, the price of Brent crude oil was recorded in January 2016 year.. Then a barrel of Brent Exchange gave $ 27.10. May 26 the price of Brent crude oil has exceeded the level of $ 50 per barrel for the first time since November 2015. Prior to this, Goldman Sachs published an analytical report according to which the oil market deficit will come in the second half of 2016. The bank’s analysts then drew attention to the decline in oil production due to supply disruptions, which among other things resulted in forest fires in Canada and militant attacks in Nigeria, which produces the most oil in Africa.
On Friday, May 27 auction in London closed at $ 48.95 per barrel of Brent crude oil.
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