Russian energy Minister Alexander Novak said that the price of oil in 40 to 60 dollars a barrel is acceptable for the budget of the country and normal operation of the industry. The official said in an interview with NTV television posted on Monday, April 18.
This price range, according to him, is valid not only for Moscow but also for producers in other countries, as in this case “the market is probably balanced, and less volatility”.
“If the price rises high, where the volume of investments will increase, supply exceeds demand and the price falls. If the price is very low, on the contrary, the lack of investment, and the price is increasing with time. Therefore, some middle range are those numbers that I mentioned”, he added.
At the same time Novak said that the lack of agreement after talks in Doha could “quite negative” impact on the price and on the oil market. “But nevertheless we believe that this does not exclude market mechanisms of price formation. Therefore, the situation will develop — at least some short period — from the balance of supply and demand and the current situation on the market,” he added.
Previously, on 18 April, it was reported that after unsuccessful negotiations the price of oil Brent on London exchange ICE in the first minutes of trading fell by more than 7 per cent, to $ 40,22 USD per barrel. The ruble at the opening of trading on the Moscow exchange on Monday has also fallen: the dollar rose by 1.9 ruble, amounting to 68.3 ruble and the Euro rose by 2.17 ruble to ruble 77,12.
The official dollar rate set by the Central Bank on 19 April, rose by 2,23 ruble to 68,27 ruble, while the Euro increased by 2.79 ruble, making the ruble 77,13.
17 April in Doha hosted a meeting of the countries-exporters of oil to discuss the issue of freezing the production of hydrocarbons. The participants of the meeting failed to reach agreement, the next meeting in a similar format is planned for June.
