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. Before this is possible “short-term rebound,” the price down, he said
According to the head of the Ministry of Energy Alexander Novak, the end of 2017 will end the cycle of low oil prices and the recovery of the market. However, this possible new drop in prices, the minister said, although this period will be short. This was Novak said at the forum Vestifinance, “Interfax»
«To be honest, I do not rule out a short-term bounce back, but overall the trend will be slightly higher,” -. He said. “The rebound does not rule out because the factors that strongly influenced the current growth rates – this is an extraordinary situation in a number of countries. This fires in Canada, the emergency situation in Libya and Nigeria, the strike in Kuwait, “- said Novak
According to him,” restoring the balance of supply and demand on the oil market began, and the end of 2017 we are. We see the end of the cycle [lower prices] and the recovery of the market. ” Novak believes that after 2017 the price will return to the range of $ 60-65 per barrel.
As Nowak said, the growth of shale oil production can only happen by the end of 2016. The main reason for decline in production, according to him, -. Is the lack of financial resources and lack of confidence of investors in the prospects for the industry
«According to our estimates, the production even at the current price of oil will continue to decline, and its minimum it will reach where -That 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 lost her. 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 things will happen “- he said,
A.Novak: freezing oil level is overdue, prices are rising
Frosting oil level is no longer necessary, says Energy Minister Alexander Novak. According to him, the idea lost its relevance due to the rise in prices
Video:. RBC
The minimum over the last few years the price of Brent crude was recorded in January 2016. 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. Oil prices have mostly held above $ 100 per barrel from February 2011 until September 2014, followed by a period of decline.
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